The image is just one way to categorize stocks, certainly not the only way 😀
Yes, you could think of pure "cannibal" stocks like AutoZone or NVR as a separate category. Although if the buybacks are very regular, you could look at the buyback yield as equivalent to a dividend yield.
A company that yields 1.5% and buys back another 2% on a regular basis, I'd personally tend to think of as a 3.5% yielding stock.
If a company pays a regular dividend and buys back occasionally but not regularly, I'd probably look at based on the dividend alone. I'd think of the buy backs as occasional bonuses.
Should there be a fifth explicit group of "cannibal" stocks or is that an inherent part of the other four groups?
The image is just one way to categorize stocks, certainly not the only way 😀
Yes, you could think of pure "cannibal" stocks like AutoZone or NVR as a separate category. Although if the buybacks are very regular, you could look at the buyback yield as equivalent to a dividend yield.
A company that yields 1.5% and buys back another 2% on a regular basis, I'd personally tend to think of as a 3.5% yielding stock.
If a company pays a regular dividend and buys back occasionally but not regularly, I'd probably look at based on the dividend alone. I'd think of the buy backs as occasional bonuses.