GOLDMAN: The 23 Best Stocks For Fat Dividends And Huge Buybacks

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REUTERS/Jo Yong-Hak

The Goldman Sachs research team has released its report on dividend and buyback investment strategies.

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"S&P 500 companies are buying back more than 3% of market cap, 2x the pace from the 1990s, and dividends are up 50% since 2010," writes Goldman economist Stuart Kaiser. "80% of S&P 500 is buying back stock. We expect 10% buyback and dividend growth in 2014."

Strong corporate balance sheets, low bond yields, and low U.S. economic growth has meant that investors want companies to return more cash to shareholders via buybacks and dividends, Kaiser notes.

And over the last 20 years, S&P 500 companies with robust buyback programs have outperformed the market.

Kaiser picks out 23 top S&P 500 stocks organized by total yield.