Several stocks recently unveiled plans to significantly enhance shareholder value. These plans include the two major types of capital returns that investors often pay attention to: dividends and buybacks. Dividends mean direct cash going into investors' pockets, while buybacks help raise earnings per share, potentially leading to stock appreciation.
However, another less-discussed form of yield comes from debt paydown. When companies pay down a large debt, it lowers their riskiness. Based on financial modeling, less risk often increases the value of a company’s stock. Let’s dive into these three companies that have outlined intentions to provide yield to investors.
