IB Net Payout Yields Model

Net Payout Yield Focus: Travelers

Since a picture is worth a thousand words, thought we'd start throwing in some graphs on the Net Payout Yield stocks. Travelers (TRV) has had one of the highest NPY's over the last year with the massive buyout they've undertaken.

The below chart shows the quarterly combined dividends and buyback percentages based on the current market cap of $21.7B. Note the Q2 2011 buyback dropped substantially due to the tornado related losses in the US. Add up the last four quarters gives a NPY of roughly 17%. Incredible how little attention the NPYs obtain these days. All the focus is on dividends. Imagine a SP500 stock with a 7% quarterly dividend like TRV posted in Q4 and than again almost in Q2 2010 as well.

Disclosure: Long TRV in client and personal accounts. Please review the disclaimer page for more information. 


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