Out Fox The $treet

Summary Viacom continues to trade at yearly lows despite results that grew over last year. The company maintains the large stock buyback plan that will benefit the stock more after the recent declines. The current 15% Net Payout Yield is a strong buy signal. The stock of Viacom (NASDAQ: VIA ) (NASDAQ: VIAB ) remains in a major downtrend despite the massive stock buyback program of the company. The latest quarterly results are a prime example of the situation with the entertainment company beating analyst estimates while the stock sits at recent lows. Viacom even trades at a generally attractive valuation though the market doesn't seem to want the stock. Read the full article on Seeking Alpha. Disclosure: Long VIAB. Please review the disclaimer page for more details. 

Back when it released its  Q2 2013 earnings report , Viacom ( NASDAQ: VIAB     ) announced that it would double its stock buyback plan to $20 billion from the previous $10 billion. Most investors have a negative view of stock buybacks, but research shows that significant buybacks that reduce share counts tend to outperform the market. The diversified media entertainment sector appears overly competitive, but the sector in general has outperformed the S&P 500 over the last couple of years. One thing that the general group has shared as a whole is the desire to buy shares back over time. Some of the companies like Walt Disney ( NYSE: DIS     ) and Time Warner ( NYSE: TWX     ) weren't as aggressive in the last year, but the buybacks have continued to set the group apart. Read the full article here . Disclosure: Long TWX. Please review the disclaimer page for more details.