“Put your money where your mouth is.”

There’s a kernel of truth in that old saying. That’s why I think it’s a good sign when a company buys back some of its stock. Most managements talk bullish, but buybacks are a sincerity barometer indicating they really mean it.

Using Gurufocus.com software in late May, I looked for companies that have bought back at least 4% of their shares annually for the past year, three years and five years. Here are a handful of stocks that meet that standard and look attractive to me.

Bank of New York Mellon

Bank of New York Mellon Corp. (BNY) doesn’t want your checking account. It provides custody, bookkeeping and transaction services for pension funds, mutual funds and other jumbo-scale investors. It is the world’s largest custodian bank, with $59 trillion in assets under supervision.

The bank has shown a profit in 29 of the past 30 years, the only exception being 2009, which was marred by the Great Financial Crisis. In addition to executing steady buybacks of shares, Bank of New York Mellon has increased its dividends at a 10% annual clip in the past five years.

Analysts don’t expect much capital appreciation here. They like Bank of New York as a safe, conservative pick. I think they may be pleasantly surprised.

Valero

Analysts are wildly split on Valero Energy Corp. (VLO). Ten analysts recommend buying it, seven have “hold” ratings (sometimes a euphemism for sell) and three rate it “underperform” or “sell.”

Due to the Iran war, oil prices are high. As a refiner, Valero is a buyer of oil, not a seller. So, its costs are up. However, gasoline prices also are high, and so Valero’s profits have been strong lately.

Valero has been a good investment historically: Its stock price has more than quadrupled in the past decade. The stock sells for only nine times the earnings analysts expect in the next four quarters.

Matson

I made a mistake on Matson Inc. (MATX), an ocean-shipping company based in Honolulu. I used to own the stock personally and for clients. I sold (at a decent profit) when President Donald Trump declared his “Liberation Day” tariffs. But that has proved to be the wrong decision.

In the past year, Matson shares have climbed 63%. Tariffs have been a problem, but not nearly as big a problem as I anticipated. The company’s strength in the Hawaii and Alaska markets has proved to be a huge benefit.

Matson stock sells for 13 times earnings, an attractive multiple any time, and especially now, when the average multiple is about 24.

Valero and Matson have debt equal to 13% of equity — a nice svelte debt ratio.

Pulte

Several homebuilders are buying their own shares back on a regular basis. One that I like is PulteGroup Inc. (PHM), which builds homes at a variety of price points. The homebuilding industry has sputtered because of unpleasant mortgage rates and buyer resistance to high home prices.

I don’t know how those obstacles will be overcome, yet I believe they are temporary. The bull case is there is tremendous pent-up demand for single-family houses. Pulte shares sell for only 11 times earnings, and the company’s revenue growth rate over the past decade was nearly 18%.

Fox

My politics are several degrees to the left of Fox News, but I like the financial performance of its parent, Fox Corp. (FOXA). Live sports programming is both a strength and a headache, as networks and streaming services pay big money for broadcasting rights.

The stock sells for 17 times recent earnings, but less than 13 times the earnings analysts expect for the next four quarters. Analysts aren’t enthusiastic: Of 22 analysts who follow the stock, only nine recommend it. The company has shown a profit in each of the past 10 years.

Performance

I’ve written two previous columns recommending stocks with consistent buybacks. The first, in May 2025, showed a one-year return of 15.8%, severely behind the 30.4% for the Standard & Poor’s 500 Total Return Index.

The second, in August 2025, showed a 22.3% return so far (through May 22, 2026). That beats the 17% return on the S&P 500.

My most successful pick was Steel Dynamics Inc. (STLD), up 92%. My worst was Employers Holdings Inc. (EIG), with a loss of 7%.

Bear in mind that my column results are hypothetical and shouldn’t be confused with results I obtain for clients. Also, past performance doesn’t predict the future.

Disclosure: Some of my firm’s clients own Fox Corp.

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