An updated edition of the Nov. 17, 2025, article.

As the Federal Reserve pivots toward monetary easing and inflation continues to cool toward its target, investors face the dual challenge of guarding against market volatility while still capturing returns. Against this backdrop, shareholder-yield investing—focused on companies that return capital through dividends, share repurchases, and debt reduction—has emerged as a compelling strategy to protect capital while enhancing total returns.

Among the companies that offer good shareholder yields, some are CION Investment Corporation (CION Quick QuoteCION - Free Report) , Grupo Cibest S.A. (CIB Quick QuoteCIB - Free Report) and W.P. Carey (WPC Quick QuoteWPC - Free Report) .

Falling U.S. Interest Rates Signal a Shift in Market Dynamics

Following several years of elevated interest rates designed to curb inflation, the Federal Open Market Committee (“FOMC”) has embarked on a rate-cut cycle, pivoting away from the restrictive policy that dominated the 2022-2024 period. According to the most recent FOMC range published by U.S. government data, the federal fund target rate now lies between 3.50% and 3.75%, marking a meaningful decline from the 5.25-5.50% peak of recent years, as the Federal Reserve responds to easing inflation pressures and slowing economic momentum.

As nominal rates decline, corporate financing costs ease, while dividend-paying and cash-returning equities become more attractive relative to fixed-income alternatives. However, the pace of cuts remains sensitive to incoming data, implying that duration risk and valuation compression could persist for assets without robust cash flows.

Cooling Inflation Provides a Supportive Backdrop

Inflation trends have eased significantly from the multi-decade highs seen earlier in this cycle. Recent U.S. CPI data indicate that headline inflation has cooled to about 2.7% year over year, while core inflation stands near 2.6%, underscoring progress toward the Federal Reserve’s 2% long-run objective.

This downtrend in inflation underpins expectations for continued monetary easing, even as the Fed remains cautious. For investors, an inflation regime near target supports equities with strong cash flows and shareholder return policies, as real yields become more palatable and the erosion of purchasing power diminishes.

Geopolitical Risks Add Layers of Uncertainty

Despite benign inflation and easing monetary policy, geopolitical risks continue to pose significant market hazards, heightening volatility and stressing the value of resilient cash-generating companies.

In early January 2026, U.S. military forces launched Operation Absolute Resolve, conducting strikes in Venezuela that resulted in the capture of president Nicolás Maduro. This unprecedented action triggered international condemnation and elevated risk perceptions globally. Per this Reuters report, Venezuela’s Interior minister reported casualties totaling 100 during the operation.

Such geopolitical shocks can ripple through energy markets, supply chains, and global investor sentiment, particularly given Venezuela’s strategic oil reserves and its alignment with Russia and China. The conflict exacerbates uncertainty across commodity markets and heightens concerns over long-term geopolitical fragmentation.

In the Indo-Pacific, China’s ongoing military drills near Taiwan and increased deployment of aircraft and naval vessels signal one of the most acute flash points for potential confrontation. This Reuters report indicates that in late 2025, Chinese forces executed extensive live-fire exercises around Taiwan’s waters, with substantial aerial and maritime activity.

The specter of conflict over Taiwan, combined with U.S.–China strategic rivalry on technology, trade, and supply chains, continues to unsettle markets — particularly technology and capital-goods sectors linked to global growth narratives.

The protracted conflict in Ukraine remains a structural destabilizer for Europe and global energy markets, with ongoing military engagements and geopolitical maneuvering. This conflict continues to discourage complacency in risk pricing and strengthen demand for assets with stable cash returns.

AI Bubble Risks Demand Defensive Allocation

While artificial intelligence (AI) continues to be a headline driver of market sentiment, there are growing concerns that valuations in the sector may be decoupling from fundamentals. Analysts warn that AI-related equities, especially those without robust earnings or capital discipline, could be susceptible to sharp corrections if growth expectations are not met.

In contrast, shareholder-yield stocks emphasize capital return discipline, free cash flow generation, and often operate in more mature sectors, offering a hedge against speculative drawdowns in technology-centric bubbles.

In an environment shaped by moderating inflation, easing rate policy, heightened geopolitical risks, and valuation concerns around growth sectors like AI, shareholder yield stands out as a practical framework for defensive equity investing. Stocks with disciplined capital return practices tend to deliver higher risk-adjusted returns and greater resilience to market shocks than traditional growth-oriented names.

For U.S. investors seeking to balance yield, stability, and long-term total return, prioritizing companies with strong shareholder yield metrics can provide both income resilience and capital support in volatile macro conditions. Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.

Ready to uncover more transformative thematic investment ideas? Explore 36 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

3 Top Stocks With Impressive Shareholder Yield

CION Investment 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 14.83%.

CION has increased its dividend payout seven times in the past five years, reflecting an annualized dividend growth rate of 7.63%. The payout ratio of 81% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that CION is keeping funds for better investment opportunities. The company has also repurchased shares worth $12 million in the first nine months of 2025.

CION’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.

CION currently sports a Zacks Rank #1 (Strong Buy) and a Zacks Value Score of ‘A’, implying strong upside potential for the stock. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grupo Cibest S.A. (CIB Quick QuoteCIB - Free Report) is another strong candidate for high shareholder yield due to its attractive dividend payments, share buybacks and effective debt management. The company offers a competitive dividend yield of around 6.05%.

CIB has increased its dividend payout seven times over the past five years, reflecting an annualized dividend growth rate of 73.86%. CIB has been reducing its outstanding debt over the past few years. The company lowered its long-term debt from $8.89 billion in 2021 to $2.29 billion in third-quarter 2025. The company authorized share buyback program worth COP 1.35 trillion (approximately $320 million) in June 2025 and has completed 27% of the repurchase by September-end.

CIB’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.

CIB currently sports a Zacks Rank #1 and a Zacks Value Score of ‘B’, implying strong upside potential for the stock.

W.P. Carey is one of the largest net-lease real estate investment trusts (REIT) with a high-quality, diverse portfolio of operationally critical commercial real estate. The company offers a competitive dividend yield of around 5.72%.

Although WPC has a negative annualized dividend growth rate of 4.78%, it has increased its dividend payout 20 times over 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 W.P. Carey 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 (Buy) and a Zacks Value Score of ‘C’, implying moderate upside potential for the stock.