Net Payout Yield

The percent a company has sent back to its shareholders through share repurchases and dividends based on a company's market cap. If a company with a 500 million market cap has purchased 50 million of stock and has a dividend yield of 10% over the last twelve months, the net payout yield would be 20%.

A high (low) payout yield indicates the company is reacting favorably (indifferent) to its shareholders. All things being equal, a high payout yield is preferable to shareholders.

The difference between Payout Yields and Net Payout Yields can often be confusing.

Payout Yield is frequently one component: the amount that the company sent back to its shareholders in dividends. Net Payout Yield consists of two (or more) components: the amount that the company sent back to its shareholder in dividends and the amount of its own stock shares that the company repurchased.

Net Payout Yield = (last twelve months of equity purchased + total common dividends paid) / market capitalization

If a company with 500MM market cap repurchases 50 million over the last twelve months and has a dividend yield (TTM) of 3%, the net payout yield would be 13%.