Over the years, companies have created shareholder value through share repurchase programs and/or dividend increases. By share repurchase program we are referring to companies that buy back their stock in the open market. Both policies can create value for shareholders although there is an ongoing debate as to how much value is created, and which is the better use of free cash flow.

My personal preference, rising dividends, should come as no surprise to regular readers. In an update on an piece he put out last summer Paul Danesi, Director & U.S. Equity Market Specialist of the ScotiaMcLeod Portfolio Advisory Group, re-examines a select group of US listed companies that fit screens for both a 5-year track record of dividend growth and share repurchases.

Click here to read Paul's full report.