ZACKS·2025-11-17 15:04Core Insights - In 2025, investors are focusing on companies that generate steady cash and return it to shareholders, with shareholder yield becoming a key metric for assessing commitment to investor rewards [2][3][4] Market Environment - Inflation is cooling and interest rates are easing, allowing companies that managed debt effectively during tough years to benefit from lower financing costs [3] - Geopolitical uncertainty and high stock valuations are making investors cautious about pursuing growth aggressively, leading to a preference for reliable cash returns [4] Shareholder Yield Strategy - Research indicates that shareholder-yield strategies outperform traditional high-dividend approaches, as high dividends alone do not ensure disciplined capital management [5] - Combining dividends with share buybacks and debt reduction provides a clearer picture of management's commitment to long-term value [6] Investment Opportunities - High-quality shareholder-yield companies offer a blend of consistent returns and volatility cushioning, reflecting management teams focused on long-term performance [7] - Notable companies with strong shareholder yields include: - CION Investment Corporation (CION): Offers a dividend yield of approximately 14.17%, with seven dividend increases in five years and a payout ratio of 81% [8][9][10] - Invesco (IVZ): Provides a dividend yield of 3.57%, with six increases in five years and a payout ratio of 44% [11][12] - TPG RE Finance Trust (TRTX): Offers a dividend yield of around 10.73%, with three increases in five years and a reduction in long-term debt from $3.71 billion in 2021 to $2.83 billion in Q3 2025 [13][14][15] - W.P. Carey (WPC): Provides a dividend yield of 5.38%, with 20 increases in five years despite a negative annualized growth rate of 4.78% [16][17][18]