Total cash returned to shareholders through dividends, buybacks, and debt reduction combined. Above 5% is strong. This gives a more complete picture than dividend yield alone, as buybacks and debt paydown also create value.
Formula
Description
Comprehensive measure of total cash returned to shareholders through dividends, buybacks, and debt reduction. Popularized by Mebane Faber in his 2013 book "Shareholder Yield." This gives a more complete picture than dividend yield alone.
Interpretation
Above 5% is strong. Companies with high shareholder yield have historically outperformed. The composition matters: dividends are more reliable, while buybacks are more flexible. Debt paydown benefits shareholders indirectly by reducing risk.
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