Shareholder Yield

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Definition

Shareholder Yield is based on three components: a dividend yield, a buyback yield, and a debt paydown yield.

Dividend Yield :
A dividend yield is how much a company has paid back in dividends.

Buyback Yield:
A buyback yield is how much a company has bought back its shares in the last twelve months over a company's market capitalization. This is referenced by the net common equity issued from a company's cash flow statement.

Debt Paydown Yield:
The debt paydown yield is the change in average of four quarters of long term debt over a company's market cap. Companies that have high debt paydown yields indicate that they are more aggressive with paying down debt.

Two of the components that make the shareholder yield payout yield can be further simplified. The sum of dividend yields and payout yields result in a net payout yield (how much company paid out to shareholders in dividends and then how much did they purchase back shares).

As a result of this simplification, YCharts then calculates shareholder yield as the sum of net payout yield and debt paydown yield.

Formula

YCharts calculates shareholder yield by summing net payout yield and net debt paydown yield. This metric is a TTM calculation, getting the average for balance sheet items and the sum of cash flow items.

(Net Payout Yield TTM + Net Debt Paydown Yield TTM) / Market Capitalization

Net Payout Yield TTM is the amount of common equity issued and the dividend yield over market capitalization. The Net Debt Paydown Yield TTM is the change in total current and non-current portion of debt over market capitalization over the trailing twelve months.

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