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Zacks Investment Ideas feature highlights: Apple and Genuine Parts
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For Immediate Release
Chicago, IL – June 13, 2024 – Today, Zacks Investment Ideas feature highlights Apple (AAPL - Free Report) and Genuine Parts Co. (GPC - Free Report) .
2 Traits of Shareholder-Friendly Companies
There are many ways that companies can keep shareholders happy, whether that be through robust quarterly performance or rock-solid financials.
In addition, companies can also demonstrate a shareholder-friendly nature by offering consistent dividend payouts and implementing share repurchase programs.
But what are the benefits of each? Let’s take a closer look.
Buybacks Can Put in a Floor for Shares
Stock buybacks, also known as share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves. Reducing the number of outstanding shares can boost earnings per share (EPS), making a company's financial position more attractive to prospective investors.
Further, buybacks can help put in a floor for shares, reflective of consistent buying pressure.
In recent years, stock buybacks have become a popular strategy among large-cap companies, particularly in sectors with significant cash reserves, specifically technology. Apple, a mega-cap tech giant, recently unveiled the biggest buyback in corporate history totaling $110 billion.
Apple has been aggressively buying back its shares over the years.
Still, it’s worth mentioning that buybacks can sometimes bring out the critics, as some believe the cash could be better deployed elsewhere, such as R&D. Nonetheless, buybacks are generally a net positive for shareholders, particularly those of mature companies with little growth left to squeeze.
Dividends Reflect Passive Income
Dividend payments are investors’ versions of paydays within the stock market.
Dividends provide a passive income stream, limit the impact of drawdowns in other positions, provide more than one way to profit from an investment, and provide the ability to reap maximum returns through dividend reinvestment.
And with a little positioning, investors can actually build a portfolio that generates monthly income despite most companies paying on a quarterly basis.
For example –
The first stock pays its dividend in January, April, July, and October. The second stock pays out in February, May, August, and November. Finally, the third stock pays its dividend in March, June, September, and December.
Companies that have been paying dividends for decades reflect not only a shareholder-friendly but also a stable nature, flexing the ability to share a portion of profits through all economic cycles, good or bad.
A great example of a company that’s consistently paid dividends is Genuine Parts Co., which currently sports a favorable Zacks Rank #2 (Buy).
Bottom Line
Buybacks and consistent dividends please shareholders, reflecting an investor-friendly nature. We’ve seen many companies announce sizable buybacks over recent years, with the most famous example undoubtedly being Apple with its $110 billion buyback announcement.
Companies that can consistently pay dividends are undoubtedly a favorite as well, with Genuine Parts Co., a current Zacks Rank #2 (Buy), holding the ranks of a Dividend King.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Apple and Genuine Parts
For Immediate Release
Chicago, IL – June 13, 2024 – Today, Zacks Investment Ideas feature highlights Apple (AAPL - Free Report) and Genuine Parts Co. (GPC - Free Report) .
2 Traits of Shareholder-Friendly Companies
There are many ways that companies can keep shareholders happy, whether that be through robust quarterly performance or rock-solid financials.
In addition, companies can also demonstrate a shareholder-friendly nature by offering consistent dividend payouts and implementing share repurchase programs.
But what are the benefits of each? Let’s take a closer look.
Buybacks Can Put in a Floor for Shares
Stock buybacks, also known as share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves. Reducing the number of outstanding shares can boost earnings per share (EPS), making a company's financial position more attractive to prospective investors.
Further, buybacks can help put in a floor for shares, reflective of consistent buying pressure.
In recent years, stock buybacks have become a popular strategy among large-cap companies, particularly in sectors with significant cash reserves, specifically technology. Apple, a mega-cap tech giant, recently unveiled the biggest buyback in corporate history totaling $110 billion.
Apple has been aggressively buying back its shares over the years.
Still, it’s worth mentioning that buybacks can sometimes bring out the critics, as some believe the cash could be better deployed elsewhere, such as R&D. Nonetheless, buybacks are generally a net positive for shareholders, particularly those of mature companies with little growth left to squeeze.
Dividends Reflect Passive Income
Dividend payments are investors’ versions of paydays within the stock market.
Dividends provide a passive income stream, limit the impact of drawdowns in other positions, provide more than one way to profit from an investment, and provide the ability to reap maximum returns through dividend reinvestment.
And with a little positioning, investors can actually build a portfolio that generates monthly income despite most companies paying on a quarterly basis.
For example –
The first stock pays its dividend in January, April, July, and October. The second stock pays out in February, May, August, and November. Finally, the third stock pays its dividend in March, June, September, and December.
Companies that have been paying dividends for decades reflect not only a shareholder-friendly but also a stable nature, flexing the ability to share a portion of profits through all economic cycles, good or bad.
A great example of a company that’s consistently paid dividends is Genuine Parts Co., which currently sports a favorable Zacks Rank #2 (Buy).
Bottom Line
Buybacks and consistent dividends please shareholders, reflecting an investor-friendly nature. We’ve seen many companies announce sizable buybacks over recent years, with the most famous example undoubtedly being Apple with its $110 billion buyback announcement.
Companies that can consistently pay dividends are undoubtedly a favorite as well, with Genuine Parts Co., a current Zacks Rank #2 (Buy), holding the ranks of a Dividend King.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research
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support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.