In a market characterized by volatility, Wolfe Research emphasizes the importance of investing in companies that have consistently repurchased their shares over at least the last decade. The S&P 500 and Nasdaq Composite recently experienced declines, while inflation remains a concern, with the May consumer price index rising 4.2% year-over-year.
Wolfe's 'Consistent Buybacks' basket includes firms like Best Buy, which boasts a 5% dividend yield and has returned $1.1 billion to shareholders in fiscal 2026. Despite facing a sales slump, Best Buy's CEO Corie Barry noted that technology remains essential for consumers.
Colgate-Palmolive, another notable mention, has seen its shares rise 13% in 2026 and recently initiated a $5 billion share repurchase program, with Morgan Stanley maintaining a bullish outlook on the stock. Financial institutions like JPMorgan Chase and industrial giant Honeywell are also included in Wolfe's basket, with both companies showing positive stock performance and dividend yields.
Honeywell plans to spin off its aerospace business, focusing on automation, which CEO Vimal Kapur believes will enhance growth opportunities, especially with the rise of AI