Searching for income and growth in today’s market? Investors should consider exposure to quality value stocks that have returned the most cash to their shareholders.
In the upcoming webcast, Shareholder Yield: You’re Not Still Investing Based on Dividends Are You?!, Meb Faber, Co-Founder and CIO, Cambria Investment Management, will focus on how shareholder yield can help make long-term investments shine.
Cambria offers a line of shareholder yield ETFs, including the Cambria Shareholder Yield ETF (NYSEArca: SYLD), Cambria Emerging Shareholder Yield ETF (EYLD), and Cambria Foreign Shareholder Yield ETF (FYLD) that may offer value for investors.
The underlying indices consist of stocks with high cash distribution characteristics and are comprised of the companies with the best combined rank of dividend payments and net stock buybacks, which are the key components of shareholder yield. The underlying indices also screen for value and quality factors, including low financial leverage.
Instead of solely focusing on dividend payments, the shareholder yield ETF strategies invest in stocks that couple strong dividend payments with share repurchases and debt paydown. The fund manager believes that this type of screening process may be a better way to identify stocks that possess strong cash flows and reward shareholders with higher yields.
“Combining income from dividends with asset growth from buybacks and capital appreciation may provide long-term returns, but valuations of the underlying companies still matter,” according to Cambria Funds.
“One of the basic tenets of investing is that, all else being equal, the less you pay for an investment, the better your future returns should be. By that logic, the better the value at which investors can purchase quality assets, the better positioned they should be for the potential of increased returns going forward.”
Financial advisors who are interested in learning more about shareholder yield strategies can register for the Tuesday, April 20 webcast here.