3 Dividend Stocks Spending Billions on Buybacks: Philip Morris International Inc. (PM) and More

More recently, GameStop’s holiday results showed no signs of a big turnaround in the wings. With new consoles still a ways off, I don’t expect the pressures on sales to end anytime soon. But I do expect the company to continue using its free cash flow in ways that benefit shareholders. The stock yields close to 4% right now.

Picking favorites
All three companies have managed to boost their shareholder returns lately through stock buybacks. But I see the most value in UPS’ shares here. Yes, the company’s failed bid for TNT Express means it won’t have the strong foothold in Europe that it wanted. But it also means that shareholders stand to gain a bigger piece of the company’s business through share repurchases. And, at just 1.5 times sales, it’s easy to see why UPS’ management would choose to invest in the company’s shares here. Coupled with a dividend program, it’s a smart use of capital, even in this bullish market.

The article 3 Dividend Stocks Spending Billions on Buybacks originally appeared on Fool.com and is written by Demitrios Kalogeropoulos.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends United Parcel Service (NYSE:UPS). The Motley Fool owns shares of GameStop and Philip Morris International.

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