To help the cream rise to the top, I maintain a personal hot list of today’s most compelling buyback stocks. I carefully research and monitor the stocks on my hot list, considering them as potential buys for the Buyback Premium Portfolio, explains David Fried, editor of The Buyback Letter.
The Buyback Premium Portfolio is beating the S&P 500 by more than 213% since its inception (August 2, 2000). This portfolio is up 376.33% since inception vs. a gain of 163.24% in the S&P 500 over the same time frame.
DXC Technology (DXC) — a new addition to this portfolio — is a Fortune 500 IT services company that covers analytics and engineering, applications, security, cloud, and business process outsourcing.
The company serves 6,000+ private and public sector clients that include aerospace and defense, automotive, banking, retail, energy, healthcare, insurance, manufacturing, media and hospitality. The company employs more than 130,000 people in 70+ countries.
A recent client acquisition drew attention — Manchester United, one of the most popular and successful sports teams in the world. DXC will help them become more data-driven and to optimize their digital offering to fans to help them engage and interact with the club.
DXC will further develop their website, manage their app (the top downloaded sports app in 68 global markets), and develop their digital presence and platforms. You’ll see DXC as a shirtsleeve partner on the shoulder of the club’s kits (uniforms).
The company also was recently awarded a multi-year contract for network and security services to the European Space Agency’s international workforce of scientists, engineers and IT specialists to enable them to collaborate seamlessly from anywhere.
Fourth quarter fiscal year results showed revenue at $4 billion (down 8.6% from the prior year), mostly due to Russia’s invasion of Ukraine and DXC exiting their domestic Russian business.
During Q4, the company repurchased $271 million; for the full fiscal year 2022, the company repurchased $634 million. In the last 12 months, management has reduced shares outstanding by 9.871%.