DuPont de Nemours Stock Shares $33 Bil Success With Investors

In the last decade, DuPont de Nemours (DD) stock has returned $33 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

As it turns out, DD stock has returned the 85th highest amount to shareholders in history.

Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.

Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Trefis works with Empirical Asset Management – a Boston area wealth manager – whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has incorporated the Trefis HQ Portfolio in this asset allocation framework to provide clients better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

Top 10 Stocks By Total Shareholder Return

For full ranking, visit Buybacks & Dividends Ranking

What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.

That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for DD. (see Buy or Sell DuPont de Nemours Stock for more details)

DuPont de Nemours Fundamentals

• Revenue Growth: 4.6% LTM and -1.0% last 3-year average.
• Cash Generation: Nearly 8.8% free cash flow margin and 16.1% operating margin LTM.
• Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for DD was -3.9%.
• Valuation: DuPont de Nemours stock trades at a P/E multiple of -172.1
• Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and lower margins

*LTM: Last Twelve Months

That’s a good overview, but evaluating a stock from an investment perspective involves much more. That is exactly what Trefis High Quality Portfolio does. It is designed to reduce stock-specific risk while giving upside exposure.

DD Historical Risk

That said, DuPont isn’t immune to big drops. It fell nearly 39% in 2018’s correction, over 55% during the Covid pandemic, and around 40% in the recent inflation shock. Even with solid fundamentals, the stock has taken significant hits when markets turn south. So, while there are positives, risk stays real when volatility hits hard.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read DD Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.