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5 Stocks With Solid Shareholder Yield to Safeguard Your Portfolio
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An updated edition of the June 23, 2025, article.
In a market increasingly driven by narratives and speculative growth, many investors overlook a powerful metric, shareholder yield, which quietly compounds wealth over time. Defined as the combination of dividend yield, share buybacks and net debt reduction, shareholder yield reflects how effectively a company returns capital to its shareholders. For long-term investors seeking sustainable returns and downside protection, focusing on high shareholder yielding stocks offers a compelling strategy.
First, dividends provide a steady income stream and often signal management’s confidence in a company’s financial health. Historically, dividends have contributed a substantial portion of total equity returns, especially during sideways or bear markets. But shareholder yield goes a step further by incorporating buybacks, which reduce share count and boost per-share metrics, such as earnings and cash flow. This is particularly attractive in a low-growth environment, where internal efficiencies and capital allocation matter more than rapid top-line expansion.
The third leg, debt reduction, adds an often-overlooked layer of risk management. The companies use excess cash to deleverage by improving their balance sheet strength and reducing default risk that enhance resilience during economic downturns. Investors exposed to such companies benefit not only from capital returned but also from improved financial positioning, which supports valuations and protects downside. By focusing on firms like Eni (E - Free Report) , BanColombia (CIB - Free Report) , Columbia Banking System (COLB - Free Report) , Donaldson (DCI - Free Report) and W.P. Carey (WPC - Free Report) , which boast high shareholder yield, investors can identify opportunities that not only provide income but also enhance overall portfolio returns.
Moreover, companies with consistently high shareholder yield tend to exhibit disciplined capital allocation and management alignment with investor interests. These firms are less likely to chase expensive acquisitions or engage in value-destructive expansion. Empirical studies, including those by academic and quantitative strategists, have shown that portfolios focused on shareholder yield outperform broad market indices over the long term, often with lower volatility.
From an investor’s perspective, this approach offers both income and growth, making it ideal for a variety of goals, including compounding wealth, funding retirement and managing risk. In times of uncertainty, high shareholder yield serves as a cushion; in bull markets, it compounds returns.
As market valuations stretch and economic cycles shift, focusing on shareholder-friendly companies may prove to be a smart defensive strategy as well as a potent wealth-building one. Investors would do well to look beyond headlines and favor those businesses that consistently reward their shareholders in tangible, trackable ways.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
5 Top Stocks With Impressive Shareholder Yield
Eni stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a competitive dividend yield of around 4.46%.
E has increased its dividend payout 10 times over the past five years, reflecting an annualized dividend growth rate of 28.1%. The payout ratio of 50% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
Additionally, E has been reducing its debt levels and strengthening its financial position. It reduced its long-term debt from $25 billion in 2020 to $23.3 billion in 2024. In 2024, Eni undertook cash returns to Eni’s shareholders of 5.1 billion euros, consisting of 3.1 billion euros of dividends and stock repurchases of 2 billion euros. Compared to other investment management firms, Eni’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
BanColombia is Colombia's largest bank in terms of assets. With a dividend yield of 11.49%, CIB provides investors with a steady income stream. The company has increased its dividend payout eight times in the past five years, reflecting an annualized dividend growth rate of 71.36%. The payout ratio of 86% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that BanColombia is keeping funds for better investment opportunities.
BanColombia also focuses on reducing its leverage, which ensures long-term financial stability. CIB reduced its long-term debt from $5.7 billion in 2020 to $5.4 billion in 2024.
BanColombia currently has a Zacks Rank #2 (Buy) and a Zacks Value Score of ‘B’, implying solid growth prospects for the stock.
Columbia Banking System has a dividend yieldof approximately 5.62%, providing another option for income-seeking investors. The company has raised its dividend payout twice in the past five years, reflecting an annualized dividend growth rate of 7.2%. The payout ratio of 51% indicates that Columbia Banking System is paying less than its income, which is sustainable over the long term. This also reflects that the company is keeping funds for better investment opportunities.
COLB has also been actively enhancing its operations to improve profitability and reduce debt. With a long history of rewarding shareholders, Columbia Banking System’s strong capital allocation strategy makes it a standout option for those looking for sustainable income and growth potential. COLB reduced its long-term debt from $7 million in 2020 to nil in 2024.
COLB currently carries a Zacks Rank of 2 and a Zacks Value Score of ‘A’, implying solid growth prospects for the stock.
Donaldson, engaged in the manufacturing and selling of filtration systems and replacement parts across the world, boasts an impressive shareholder yield due to its robust dividend policy and stock repurchase initiatives. The company offers a dividend yield of around 1.64%. DCI has increased its dividend payout five times in the past five years, reflecting an annualized dividend growth rate of 6.26%. The payout ratio of 30% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that DCI is keeping funds for better investment opportunities.
Additionally, it maintains a solid balance sheet with manageable debt levels, ensuring financial stability. The firm reduced its long-term debt from $617 million in 2020 to $483 million in December 2024. DCI’s commitment to shareholder-friendly policies makes it a better choice for investors seeking strong total returns through dividends and capital appreciation. Donaldson returned $162.7 million of cash to shareholders during fiscal 2024 through common stock repurchases. The total remaining authorization for repurchase of the company’s common stock, as of July 31, 2024, was 10.7 million shares.
DCI currently carries a Zacks Rank #2 and a Zacks Value Score of ‘C’, implying moderate growth prospects for the stock.
W.P. Carey stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a competitive dividend yield of around 5.53%.
Although WPC has a negative annualized dividend growth rate of 4.64%, it has increased its dividend payout 20 times in the past five years. The payout ratio of 74% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
WPC’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
WPC currently carries a Zacks Rank of 2 and a Zacks Value Score of ‘D’, implying moderate upside potential for the stock.
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5 Stocks With Solid Shareholder Yield to Safeguard Your Portfolio
An updated edition of the June 23, 2025, article.
In a market increasingly driven by narratives and speculative growth, many investors overlook a powerful metric, shareholder yield, which quietly compounds wealth over time. Defined as the combination of dividend yield, share buybacks and net debt reduction, shareholder yield reflects how effectively a company returns capital to its shareholders. For long-term investors seeking sustainable returns and downside protection, focusing on high shareholder yielding stocks offers a compelling strategy.
First, dividends provide a steady income stream and often signal management’s confidence in a company’s financial health. Historically, dividends have contributed a substantial portion of total equity returns, especially during sideways or bear markets. But shareholder yield goes a step further by incorporating buybacks, which reduce share count and boost per-share metrics, such as earnings and cash flow. This is particularly attractive in a low-growth environment, where internal efficiencies and capital allocation matter more than rapid top-line expansion.
The third leg, debt reduction, adds an often-overlooked layer of risk management. The companies use excess cash to deleverage by improving their balance sheet strength and reducing default risk that enhance resilience during economic downturns. Investors exposed to such companies benefit not only from capital returned but also from improved financial positioning, which supports valuations and protects downside. By focusing on firms like Eni (E - Free Report) , BanColombia (CIB - Free Report) , Columbia Banking System (COLB - Free Report) , Donaldson (DCI - Free Report) and W.P. Carey (WPC - Free Report) , which boast high shareholder yield, investors can identify opportunities that not only provide income but also enhance overall portfolio returns.
Moreover, companies with consistently high shareholder yield tend to exhibit disciplined capital allocation and management alignment with investor interests. These firms are less likely to chase expensive acquisitions or engage in value-destructive expansion. Empirical studies, including those by academic and quantitative strategists, have shown that portfolios focused on shareholder yield outperform broad market indices over the long term, often with lower volatility.
From an investor’s perspective, this approach offers both income and growth, making it ideal for a variety of goals, including compounding wealth, funding retirement and managing risk. In times of uncertainty, high shareholder yield serves as a cushion; in bull markets, it compounds returns.
As market valuations stretch and economic cycles shift, focusing on shareholder-friendly companies may prove to be a smart defensive strategy as well as a potent wealth-building one. Investors would do well to look beyond headlines and favor those businesses that consistently reward their shareholders in tangible, trackable ways.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
5 Top Stocks With Impressive Shareholder Yield
Eni stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a competitive dividend yield of around 4.46%.
E has increased its dividend payout 10 times over the past five years, reflecting an annualized dividend growth rate of 28.1%. The payout ratio of 50% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
Additionally, E has been reducing its debt levels and strengthening its financial position. It reduced its long-term debt from $25 billion in 2020 to $23.3 billion in 2024. In 2024, Eni undertook cash returns to Eni’s shareholders of 5.1 billion euros, consisting of 3.1 billion euros of dividends and stock repurchases of 2 billion euros. Compared to other investment management firms, Eni’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
E currently sports a Zacks Rank #1 (Strong Buy) and a Zacks Value Score of ‘A’, implying strong upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
BanColombia is Colombia's largest bank in terms of assets. With a dividend yield of 11.49%, CIB provides investors with a steady income stream. The company has increased its dividend payout eight times in the past five years, reflecting an annualized dividend growth rate of 71.36%. The payout ratio of 86% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that BanColombia is keeping funds for better investment opportunities.
BanColombia also focuses on reducing its leverage, which ensures long-term financial stability. CIB reduced its long-term debt from $5.7 billion in 2020 to $5.4 billion in 2024.
BanColombia currently has a Zacks Rank #2 (Buy) and a Zacks Value Score of ‘B’, implying solid growth prospects for the stock.
Columbia Banking System has a dividend yieldof approximately 5.62%, providing another option for income-seeking investors. The company has raised its dividend payout twice in the past five years, reflecting an annualized dividend growth rate of 7.2%. The payout ratio of 51% indicates that Columbia Banking System is paying less than its income, which is sustainable over the long term. This also reflects that the company is keeping funds for better investment opportunities.
COLB has also been actively enhancing its operations to improve profitability and reduce debt. With a long history of rewarding shareholders, Columbia Banking System’s strong capital allocation strategy makes it a standout option for those looking for sustainable income and growth potential. COLB reduced its long-term debt from $7 million in 2020 to nil in 2024.
COLB currently carries a Zacks Rank of 2 and a Zacks Value Score of ‘A’, implying solid growth prospects for the stock.
Donaldson, engaged in the manufacturing and selling of filtration systems and replacement parts across the world, boasts an impressive shareholder yield due to its robust dividend policy and stock repurchase initiatives. The company offers a dividend yield of around 1.64%. DCI has increased its dividend payout five times in the past five years, reflecting an annualized dividend growth rate of 6.26%. The payout ratio of 30% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that DCI is keeping funds for better investment opportunities.
Additionally, it maintains a solid balance sheet with manageable debt levels, ensuring financial stability. The firm reduced its long-term debt from $617 million in 2020 to $483 million in December 2024. DCI’s commitment to shareholder-friendly policies makes it a better choice for investors seeking strong total returns through dividends and capital appreciation. Donaldson returned $162.7 million of cash to shareholders during fiscal 2024 through common stock repurchases. The total remaining authorization for repurchase of the company’s common stock, as of July 31, 2024, was 10.7 million shares.
DCI currently carries a Zacks Rank #2 and a Zacks Value Score of ‘C’, implying moderate growth prospects for the stock.
W.P. Carey stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a competitive dividend yield of around 5.53%.
Although WPC has a negative annualized dividend growth rate of 4.64%, it has increased its dividend payout 20 times in the past five years. The payout ratio of 74% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
WPC’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
WPC currently carries a Zacks Rank of 2 and a Zacks Value Score of ‘D’, implying moderate upside potential for the stock.