Dividends and Stock Buybacks are Delivering Superior Returns, New Book Shows

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The Search for Yield: How to Boost Your Returns and Reduce Your Risk with Dividends and Buybacks Now Available

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“The findings challenge the idea that dividends and buy-back stocks are only good as investments during bear markets,” said Jonathan Worrall.

The current investment environment is characterized by contrasts and uncertainty, but investors looking for yield continue to be rewarded handsomely by dividend and stock buybacks, according to a new book published by Mergent Business Press.

At a time when fixed income returns remain low and when the stock market recovery remains volatile, investors in consistent dividend-yielding stocks are seeing positive and stable returns. “Investors remain scarred and wary after the financial crisis and the recession as well as with current geo-political events and health scares, and investment levels remain generally lower, but dividend stocks and stocks with ongoing buyback programs are among the brighter and safer areas of the market,” said Jonathan Worrall, one of the book’s authors and CEO of South Carolina-based Mergent, Inc., which conducted the research and published the book.

The book, The Search for Yield: How to Boost Your Returns and Reduce Your Risk with Dividends and Buybacks, discusses how the current investment environment has changed, how and which dividend stocks are returning the most, why so many companies are buying back their stock, and which ones are doing so.

The book is the third in Mergent, Inc’s dividend investment series and shows how dividend and buyback investments have outperformed the main market in recent years, despite the stock market rebound since the financial crisis. The NASDAQ U.S. Buyback Achievers Index for example returned 29.69% over the year to March 31, 2014, versus 21.86% for the S&P 500 Index — despite the S&P 500 Index’s solid growth in the previous year.

“The findings challenge the idea that dividends and buy-back stocks are only good as investments during bear markets,” said Jonathan Worrall. “Many companies including cash-rich technology companies are issuing attractive dividends and running ongoing buyback programs to maintain investor interest in a diversifying and very different investment environment.” Companies are buying back their stock to boost their value, attract investor attention and as a result of shareholder activism among other reasons.

The search for yield in the post-recessionary environment has come at a time when the number of dividend and stock buyback investment opportunities continues to expand. Conditions are similar in many markets abroad, with the number of international companies — both on U.S. stock exchanges and outside the U.S. — issuing dividends and buying back their stock also on the rise. Companies in Japan, Hong Kong and Europe are particularly active in buying back their stock.

The book also reveals which exchange traded dividend and buy-back funds are performing the best, where the best dividend and buy-back investment opportunities are abroad and key information on top dividend and buyback stocks. The authors, Jonathan Worrall and Peter O’Shea, have conducted extensive independent research on dividend and buy-back yields in recent years, as well as tapping extensive data from Ford Equity Research, which has been collecting data on buy-backs since the 1990s.

Further details on the book are available at http://www.mergent.com/about-mergent/the-search-for-yield

The book is available for purchase at http://www.mergentbusinesspress.com/


Peter O’Shea is Managing Editor for one of the academic market’s leading online industry analysis products, Mergent, Inc’s Industry Reports. A finance journalist and editor since the 1990s, he oversees the research of 120 independent research reports a year into a range of industries around the world.

Jonathan Worrall is Chief Executive Officer for leading financial information provider Mergent, Inc. and investment research analytics firm Intrinsic Research Systems, Inc. He is also chairman of independent equity research firm Ford Equity Research, which has been conducting research and data on stock buybacks since the mid-1990s. At Mergent he was responsible for the creation of the Dividend Achiever Index family of products.

About Mergent Business Press
Mergent Business Press allows you, the end user, to view and order a wide variety of books that are available including D&B®, Hoover’s™ and Harris as well as Mergent print publications. Mergent Business Press is also available as a mobile application for when you are on the go. Our web-based platform provides quick links to those publications and is an extremely easy-to-use search engine. With one click or keyword, you will be directed to the books that have all the information you and your organization have been looking for and require. To learn more, visit http://www.mergentbusinesspress.com

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