This year is shaping up to be a good one for those using a
Total Yield strategy.
For those who aren't familiar, it's a simple strategy I've
been talking about for the past few weeks. I've been telling
income investors that if they're investing in just
company that pays a dividend, they may be leaving a lot of money
on the table.
That's why instead of simply focusing on companies with high
dividend yields, the Total Yield strategy looks at companies that
reward shareholders with two "extra" payment methods in addition
to dividends -- ones that add rocket fuel to a dividend stock's
potential returns. (I talked about each of these "extra" payment
methods in detail
It's simple. Investing in dividend-paying companies that give
out these two "extra" payments over ones that don't
can mean the difference between merely keeping pace with
the market and beating it.
Here's the proof: from 1982 to 2011, the Total Yield strategy
returned 15.04% annualized, handily outperforming the S&P
500, which returned 10.96% annualized over the same period.
Extensive back-tested research has shown that by using the
Total Yield strategy -- choosing stocks that pay dividends, buy
back shares of their own stock and reduce their debt loads --
investors have seen extraordinary success.
Just look at how $100,000 invested back in 1982 would have
grown through 2011...
But this is just a broad example of the potential returns
Total Yield can produce.
So today, I'd like to tell you about one of my favorite Total
Yield investments for 2014 and beyond. It's one that's managed to
outperform even Buffett's Berkshire Hathaway portfolio by a
margin of 8-to-1.
Cambria Shareholder Yield ETF (NYSE:
is pretty much a no-brainer investment for those interested in
capturing Total Yield.
That's because Total Yield is exactly what this fund is
designed to calculate.
Since the fund's inception in May of 2013, investors have
poured over $180 million into the ETF. It was ranked the "Best
ETF Launch of 2013" by Bloomberg.
It's easy to see why...
The fund combines the three Total Yield cash-return factors --
dividends, buybacks, and debt reduction. It also uses proprietary
calculations that take into effect share-price momentum and
valuation to arrive at an evenly weighted portfolio of the top
100 Total-Yield stocks in the United States.
Here's a snapshot of the fund's top 10 holdings on January 2,
2014, demonstrating the phenomenal returns that SYLD's Total
Yield investments have generated in the past...
Price (January 2, 2014)
|Northrop Grumman Corp. (
|Ameriprise Financial (
|Southwest Airlines Co. (
|Gannett Co. (
|Flowserve Corp. (FLS)
|Raytheon Co. (RTN)
|Western Digital Corp. (WDC)
|Xerox Corp. (XRX)
|Legg Mason (LM)
You can see that no holding in the top 10 has earned less than
24% in the few months since SYLD was launched... and several
holdings have topped 30%, 40% and even 50%.
In fact, in the six-month stretch between its inception and
January 2, 2014, SYLD managed to beat the returns of Buffett's
Berkshire Hathaway by a nearly 8-to-1 margin.
Take a look...
Now, I can't promise that SYLD or other Total Yield picks will
do quite this well all the time. But it sure does speak volumes
when you're invested in something that's outperformed the
greatest investor on Earth... even for a span of a few
With all of its recent success you might expect to see
sky-high prices for the SYLD fund.
Fortunately that's not the case...
The fund's annual expenses are also reasonable for an actively
managed fund of this type -- only 0.59% per year.
SYLD is one of those rare "all-weather" funds that should form
the core of every income-investor's portfolio. It's just one
example of many that show how if you're not investing in Total
Yield stocks -- stocks that reward you with a combination of
dividends, share repurchases and debt reduction --
you're missing out on loads of potential returns
My recent research has proven this. It's why last year, 24 out
of 25 of the stocks with the highest Total Yield ratings
more than doubled the S&P 500's return
. And it's why this year, after researching thousands of
potential securities, I've been able to pinpoint a handful Total
Yield stocks that I expect will outperform both the S&P 500
and ordinary dividend strategies for 2014.
They're all in my special report, "
The Top 5 Total Yield Stocks For 2014
." There I'll tell you about a little-known but rapidly-growing
financial company that boasts a dividend yield of 7%, plus a
dominant global retailer that's soared more than 143% since it
bought back $17 billion worth of its own shares in 2011. You can
learn how to get this report free by
visiting this link