Shareholder Yield

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 the value of shares the company has bought back in the last twelve months over a company's market capitalization. This uses 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 share buybacks).

YCharts then calculates shareholder yield as the sum of net payout yield and debt paydown yield.

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

This metric is a TTM calculation

Net Payout Yield TTM = (common equity issued + dividend yield) / market capitalization

Net Debt Paydown Yield TTM = (average of the last 4 quarters of long term debt for the current quarter - average of the prior 4 quarters of long term for the prior quarter) / market capitalization