DefensiveInvesting: Top Dividend Payers with Consistent Share Buybacks Recommended by Wolfe Research

Wolfe Research highlights organizations with a decade-long history of share repurchases as a defensive strategy amid market volatility. Recent data shows mixed market performance, with inflation remaining a key concern. The firm’s “Consistent Buybacks” basket identifies firms that have reduced share counts annually for at least 10 years, often outperforming during economic downturns. These companies also offer reliable dividends.

Best Buy, with a 5% dividend yield, exemplifies this approach. In fiscal 2026, the retailer returned $1.1 billion to shareholders via buybacks and dividends while raising payouts for 13 consecutive years. Financial results for 2027 remain strong, driven by resilient consumer demand despite inflation.

Colgate-Palmolive, yielding 2.4%, joined the cohort after a recent dividend increase and a $5 billion buyback program. As a Dividend Aristocrat, it has consistently raised payouts for 25 years. Analysts praise its earnings potential from pricing power and emerging market exposure.

JPMorgan Chase, yielding 1.8%, also fits the criteria. The bank signaled potential $20 billion in acquisitions aligned with core operations, alongside a first-quarter earnings beat.

Honeywell, with a 2.1% yield and 17% year-to-date gains, plans to spin off its aerospace division in June to focus on automation. The move aligns with growth opportunities in AI-driven sectors.

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