Out Fox The $treet

With dividends and high yields in vogue these days, investors need to be careful that they don’t overpay for these stocks. Some of the stocks have performed so well over the last couple of quarters that their share prices have surged 30-50% during that time period, which is odd for multi-billion dollar consumer goods and insurance stocks. This issue faces the investors in Campbell Soup (NYSE: CPB ) , Chubb (NYSE: CB   more » ) Disclosure: Long CB and TRV. Please review the disclaimer page for more details. 

Most investors continue to focus on high dividend yielding stocks paying very little attention to stock buybacks. Unless you're a retiree living completely on fixed income, it's a mistake to not focus on the complete picture of returns of capital to shareholders. The combination of stock buybacks and dividends or Net Payout Yields (NPY) has offered higher returns in the past. Buybacks can be a more efficient return of capital to shareholders as it reduces the tax burden of investors..... Read the rest of the article at SeekingAlpha .  Disclosure: Long WLP, GPS, and MHS. Please review the disclaimer statement.