PFM: A Dividend-Focused Fund That Is Light On Dividends And Growth

2026-02-11 18:30:31 ET

Dividends from many large-cap companies appear to be going the route of the Dodo bird. More companies are choosing to invest their profits back into their operations through capital expenditures or using them for stock buybacks. Last year was the fifth in a row that companies spent more on stock buybacks than they did on dividends. There was about a trillion dollars committed to buybacks and only $750 billion in dividend payments. "Total shareholder yield", which includes dividends and stock repurchases, has replaced dividend yield in many earnings presentations as a performance metric. As shown in the chart below, the average dividend yield from a stock in the S&P 500 has been cut in half over the last decade....

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