Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
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Validea used the investment strategy outlined in the book Shareholder Yield written by Meb Faber to create our Shareholder Yield Investor portfolio.
This strategy looks for companies that put shareholders first. It selects stocks that pay dividends, buy back their stock, and pay down debt. The summation of those three variables is called shareholder yield and measures a firm's commitment to shareholder friendly practices. In addition to shareholder yield, this strategy also filters stocks based on value, quality, debt, and relative strength.