Many high-yielding dividend payers don't generate enough free cash flow to also be able to buy back shares. Often, companies have to choose which way they want to reward their shareholders. However, there are some special companies that can accomplish both.

Pfizer (PFE 0.23%), Lowe's (LOW 1.49%), and ExxonMobil (XOM 0.39%) are all companies that pay higher yields than the S&P 500 average of 1.7%, and they also bought back at least $2 billion in shares last quarter. What else makes these stocks so special? Let's take a closer look.

1. Pfizer

Pfizer is generating a boatload of money from its COVID-19 vaccine and pill this year. Thanks to those relatively new sources of revenue, its top line will be around $100 billion for 2022. That's more than double the $41.9 billion it reported in 2020. 

Its free cash flow during the first three months of 2022 was $5.9 billion. Of that, Pfizer spent $2.2 billion on its dividend, which yields 3% annually. It also bought back $2 billion worth of shares. The last time the company bought back shares was in 2019. The healthcare giant's new fortune has allowed it to give back to its shareholders while also pursuing multiple acquisitions. 

Pfizer is building for the future while enjoying mammoth profits from the present. And with second booster shots still needed, the company's COVID-19 revenue isn't going to be disappearing anytime soon. For long-term investors, Pfizer could make for a great stock to buy and hold.

2. Lowe's

Home improvement chain Lowe's is another company that has been doing well since the pandemic. In the year ended Jan. 31, 2020, sales rose by just 1% year over year. But the following year, as consumers bought up houses and spent more time fixing things around the house as stay-at-home orders limited mobility, the retailer's sales jumped by 24% to just under $90 billion. And they would rise the next year by another 7%, to more than $96 billion.

An economic slowdown may put an end to those suddenly fast-growing figures. But the numbers aren't falling off a cliff; for the period ended April 29, sales of were down just 3% year over year to $23.7 billion. Free cash flow totaled $2.6 billion (versus $4 billion a year ago). The company spent $537 million on its dividend and, for the second straight quarter, it bought back more than $4 billion worth of common stock.

Lowe's expects revenue to be fairly stable, projecting that comparable sales will decline by no more than 1% this year. Although its share buybacks may slow down, it's likely that this trend of paying dividends and repurchasing shares will continue. Meanwhile, investors can get a solid yield of 2.3% from the Dividend Aristocrat while also benefiting from its generous buybacks.

3. ExxonMobil

Oil and gas giant ExxonMobil wasn't doing well during the early stages of the pandemic as stay-at-home orders meant discretionary travel was almost nonexistent at times, leading to low oil prices. But with economies opening back up, demand is picking up this year. And the war in Ukraine has also affected supply, with many countries no longer buying Russian oil. The combination of both supply and demand moving in favorable directions has led to oil prices hitting highs not seen in years.

As a result, Exxon and other oil producers look poised to have a strong 2022. For the period ended March 31, Exxon's free cash flow was $10.8 billion, compared with $6.9 billion a year ago. It used $3.8 billion to pay its cash dividends and bought back over $2 billion worth of shares. In the previous three years combined, Exxon spent less than $1.2 billion on share buybacks. If oil prices decline, investors will likely see the company tighten up on these buybacks.

The company's focus is likely on keeping its dividend streak going. At nearly 40 years of consecutive rate hikes, the stock has been a popular one to hold for income investors. Its 4.1% yield is also the highest on this list. However, Exxon also carries the most risk of the three stocks listed here given its exposure to oil prices, which can be volatile.