IB Net Payout Yields Model

Net Payout Yield Focus: WellPoint

Similar to Travelers (TRV) profiled earlier today, WellPoint (WLP) had one of the largest stock repurchase plans over the past year or so making them a top Net Payout Yield (NPY) stock.

Until the recent selloff, WLP was hitting levels that apparently made management slow down on purchases. Now that the stock has slumped it will be interesting to see how management reacted. Sill with the new yet small 1.6% dividend yield, the stock had a roughly 10% annualized yield using Q2 numbers. Very solid numbers, but also highlighting how if the stock hits $80 again it might be time to take profits based on the NPY model.

For now, WLP will remain a solid fixture of the Net Payout Yields model.






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


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