Definition
Shareholder yield combines dividend yield with net buyback yield to show total capital returned. This provides a more complete picture than dividend yield alone, especially for companies that prefer buybacks. Higher shareholder yield indicates more capital-friendly management.
Formula
Shareholder Yield = Dividend Yield + Net Buyback Yield
Example
A company with 2% dividend yield and 3% net buyback yield (shares reduced by 3%) has 5% shareholder yield, returning 5% of market cap to shareholders annually.
FAQ
What is Shareholder Yield?
Total cash returned to shareholders through dividends and buybacks.
How do you calculate Shareholder Yield?
A common formula for Shareholder Yield is: Shareholder Yield = Dividend Yield + Net Buyback Yield
Why is Shareholder Yield important?
Shareholder Yield helps investors evaluate valuation and make more informed decisions.