Invest in Profit-Yielding Stocks: Opt for High-Dividend Shares Instead of ETFs
New and Improved:
Invest in the real dividend kings and watch your money grow - here's how!
Investing in dividend stocks can be rewarding, but it's not always a winner when it comes to performance. However, there's another form of shareholder value that often gets overlooked: share buybacks.
If you've invested in the dividend kings in the past, you know the feeling of substantial outperformance. But how about investing in a fund that makes this a consistent reality? Let's delve into the Invesco Global Buyback Achievers UCITS ETF (WKN: A114UD).
Beating Traditional Dividend Funds
Holding this ETF has returned an impressive 12.03% annually since its inception, outperforming nearly every dividend index and even the MSCI ACWI. So, what makes this fund so special?
The Invesco Global Buyback Achievers UCITS ETF invests in non-U.S. companies that have dramatically reduced their outstanding shares in the past year - via significant buybacks. By pinpointing companies that may be undervalued, have strong fundamentals, and benefit from a reduction in supply at the exchange, the fund has the potential to deliver weaker traditional dividend funds a run for their money.
Investing in the Real Dividend Kings
If you're not keen on investing in an ETF, you can always check out the current top 10 positions of the fund for some intriguing investment ideas:
- Royal Dutch Shell Plc Class A
- Johnson & Johnson
- Alibaba Group Holding Ltd Ordinary Shares
- TotalEnergies SE
- Booking Holdings Inc.
- Comcast Corporation Class A
- Deere & Company
- Fiserv Inc.
- Lockheed Martin Corporation
- BP p.l.c.
Further Reading
- 12.07% Dividend Yield in February: Get Ahead of the Dividend Season with These Stocks
- Is a Harsh Correction Coming for Stocks & Co? Goldman Sachs with Clear Forecast
The Straight Dope
The Invesco Global Buyback Achievers UCITS ETF focuses on companies that actively repurchase their own shares, setting itself apart from traditional funds that offer high dividend yields. Its unique strategy could potentially deliver robust returns through the outperformance of growth-oriented or tax-efficient markets. By reducing shares on the market, companies can boost earnings per share and increase share prices, leading to improved total returns. Plus, targeting companies with robust share buyback programs allows for higher quality and value investments over high dividends.
While the top 5 holdings are listed here, the remaining top 5 positions consist of additional global companies with strong buyback activity, based on the fund's index tracked.
- The Invesco Global Buyback Achievers UCITS ETF, with its focus on investing in companies that actively repurchase their own shares, may offer a unique and potentially robust return through the outperformance of growth-oriented or tax-efficient markets, as opposed to traditional funds that offer high dividend yields.
- By looking at the current top 10 positions of the Invesco Global Buyback Achievers UCITS ETF, such as Royal Dutch Shell Plc Class A, Johnson & Johnson, and Alibaba Group Holding Ltd Ordinary Shares, one can find intriguing investment ideas that might capitalize on share buybacks and improve total returns.
