Shareholder yield

Also called: buyback yield, total yield

All the cash returned to owners in a year (dividends plus share buybacks) as a percentage of the company's market value.

Formula

Shareholder yield = (Dividends + Buybacks) ÷ Market value

Worked example

1. Example plc pays $0.6bn in dividends; suppose it also buys back $1.0bn of shares: $1.6bn in total
2. $1.6bn ÷ $40bn market value = 4.0%

Result: 4.0%

How to read it

A fuller picture than dividend yield alone. Check the share count is actually falling, or buybacks may just be offsetting shares paid to staff.

See it with real numbers: Any company page → (free account)