Boost your portfolio with buyback stocks, Wolfe Research says
When markets turn shaky, look to stocks with a track record of buybacks to help smooth the ride, according to Wolfe Research. Traders are bracing for further market volatility as President Donald Trump’s deadline for the reopening of the Strait of Hormuz approaches. Trump has given Iran until 8 p.m. ET Tuesday to reach a deal with Washington to reopen the waterway or else he’s threatened the U.S. will destroy the Islamic Republic’s bridges and power plants. Stocks were lower Tuesday afternoon on the uncertain outlook for a deal, while oil prices crept higher, with West Texas Intermediate crude futures topping $117 per barrel at one point. For investors seeking relative safety, Wolfe shared what it calls its most defensive basket of stocks: those delivering consistent buybacks. “During economic slowdowns or recessionary environments, one of our favorite strategies is buying companies consistently buying back shares on a net basis,” Chris Senyek, chief investment strategist, wrote in a report issued Monday. “This cohort of stocks has generally outperformed heading into and throughout recessions.” Wolfe turned up a list of companies that have lowered their share count through buybacks for at least 10 consecutive years. The group also includes not only dividend payers — but also a few Dividend Aristocrats with a history of lifting their payment for at least 25 straight years. Here are some of the stocks that made the screen: Lowe’s Cos. turned up in Wolfe’s basket. The stock has a current dividend yield of about 2.1%, and shares have lost more than 4% in 2026. The home improvement company is also a dividend aristocrat, having raised its annual dividend for more than 25 straight years . In all, 13 of 27 analysts rate Lowe’s a buy or strong buy, while 13 call it a hold, according to LSEG. Consensus price targets call for 23% upside. Mizuho is bullish on Lowe’s, rating it outperform. “We view Lowe’s as decisively well-positioned as home improvement demand recovers and unleashes outsized earnings expansion in the process,” the investment bank wrote in a March 23 note. Mizuho expects same store sales to turn positive this year, and argues that Lowe’s valuation is discounted compared to its competitor Home Depot. Mizuho’s price target of $294 implies 25% appreciation from Monday’s close. Automatic Data Processing , a payroll services provider, made Wolfe’s screen. ADP lifted its cash dividend last November for a 51st straight year . ADP’s current dividend yield is 3.3%. Shares have slumped more than 20% in 2026, plagued by worries about artificial intelligence disruption. “AI is obviously disruptive, but the market seems over-indexed to risks without acknowledging unique moats around their business and incremental opportunities,” wrote analysts at Stifel Financial in a February report. The firm noted that while AI tools could cut the time and effort needed to build a payroll engine, ADP’s competitive moat includes its specialty in regulatory compliance around payroll, taxes and employee benefits, as well as the company’s enormous pool of employment data. Analysts are cautious on ADP, with 11 out of 19 rating it hold, per LSEG. But the consensus price target equals more than 31% upside. Other stocks that made it on to Wolfe’s list of companies making consistent buybacks include Colgate-Palmolive , Illinois Tool Works , AO Smith and Mondelez .
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