This is the editorial of our monthly Shareholder Yield Letter published on 2025-09-09. Sign up here to get it in your inbox on the second Tuesday of every month.
More information about the newsletter can be found here: The best large cap investment strategy ever
Companies are moving away from dividends and embracing share buybacks - a trend that gives you more long-term growth and better tax treatment.
This article shows why your system already captures this advantage, how your portfolio is positioned ahead of the curve, and what you should do now to stay on track. If you want peace of mind, better income, and fewer nasty surprises, this strategy has you covered.
Estimated Reading Time: 6 minutes
There is a quiet change happening in global markets. Something few people talk about, but one that directly supports the success of the Shareholder Yield investment strategy.
July’s Robeco Multi-Asset Outlook, the headline said it all:
“The share buyback’s rise sees the dividend’s demise.”
This is not bad news. For you as a Shareholder Yield Letter subscriber, it is the perfect confirmation: you are following the right strategy.
Let me explain why, and why you are already one step ahead.
What’s Changing and Why It Helps You
Robeco points out a clear global trend: companies prefer buybacks over dividends. Why?
- Buybacks are flexible. Management can start or stop them without scaring investors. This is NOT the case with dividends.
- They are tax efficient. In many countries, you pay no tax on buybacks unless you sell. Dividends come with withholding taxes and are taxed as income here in Germany.
- They support the share price. The company is a strong buyer in the market, and fewer shares mean each one is worth more.
In short, buybacks reward patient investors with long-term gains not just quarterly cash. This fits our strategy perfectly.
In the Shareholder Yield Letter, we do not chase a high dividend yield – research shows this is a bad idea. We combine dividend yield and net buybacks to find companies that return the most cash to shareholders.
The Robeco report confirms what we already know: Dividends alone are no longer the full picture. Total capital return is what matters.
A System Built to Benefit from Global Trends
Your strategy is simple but powerful:
- We invest only when the MSCI World Index is in an uptrend. This protects you from market crashes and bad timing.
- We select market-leading companies with large market caps and healthy financials. These are the same types of companies now leading buyback programs globally.
- We apply a rigorous checklist and stop-loss system. This keeps your downside low and your confidence high.
When Robeco says European companies are ramping up buybacks and Japanese firms are setting records, we smile because your portfolio is already positioned to catch those gains.
What You Can Do Now
Let us turn this global insight into personal action.
- Stay Consistent. Do not get distracted by short-term news. Your edge is in sticking with this tested strategy.
- Reinvest Wisely. When companies buy back shares and raise dividends, your capital grows, without you lifting a finger.
- Stick With the System. When we release new ideas, be prepared to act. These are the moments when your discipline pays off.
Remember: The best investors are not the fastest. They are the most consistent.
Why This Strategy Works - Even When Others Struggle
Many investors chase yield blindly. They pick high-dividend stocks without checking financial strength. That leads to “yield traps”, unsustainable payouts followed by cuts and losses.
You are doing the opposite. You are following a system that uses:
- Large, stable companies that prioritise shareholder returns
- Market timing to avoid bear markets
- Buybacks + dividends, not just yield
Reinforcing the Belief: “This Works for You”
If you ever doubt the path you are on, go back to the core idea of this newsletter:
- Smart, systematic investing leads to financial independence, with less stress.
- You do not need to predict the next hot sector.
- You do not need to outguess central banks.
- You simply need to stay the course, using a strategy backed by data, tested by time, and aligned with how the world is evolving.
Your sticking to the strategy analyst wishing you profitable investing!
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FREQUENTLY ASKED QUESTIONS
1. Why should I care if companies are doing buybacks instead of paying dividends?
Because it changes how your returns show up. With buybacks, the value of your shares can grow quietly over time. No taxes until you sell. No income spikes. That is why we focus on total capital return: buybacks plus dividends.
2. Does this mean I should stop looking for high-dividend stocks?
Yes, if you want safer, smarter returns. High dividend yield alone often means trouble ahead. It can signal a company under pressure. We avoid those “yield traps” by checking both dividends and buybacks—companies that reward you without risking your capital.
3. What if the company stops buying back shares? Do I lose?
Not if you follow the strategy. We only hold companies when the market is rising and the business remains strong. If a stock falls 20% or fails our checklist, we sell. The system protects your downside. You are not just hoping. You are managing risk with rules.
4. Why does timing the market matter in this strategy?
Because most losses happen in bear markets. Our strategy avoids new buys when the MSCI World Index is below its 200-day average. That one rule alone can protect you from crashes. You invest when it makes sense—not just because you want to.
5. Is this strategy only for big investors or can I use it too?
You can use it today. You do not need millions. You just need discipline. We show you what to buy, when to buy it, and when to sell. You follow the rules. The system does the heavy lifting.
6. How do I know this will work for me?
Because it is based on global trends, tested data, and large, safe companies. You are not betting on hype or predictions. You are using a method backed by over 80 years of market results. And you are already ahead of most investors who still chase the wrong yields.
7. What should I do now to benefit from this shift?
Stick with the strategy. Stay invested in companies that return cash through buybacks and dividends. Reinvest when possible. Follow each issue of the Shareholder Yield Letter. Your edge is in not reacting. It is in being consistent when others are emotional.
