One interesting metric that often goes unmentioned but can provide valuable insight into a company’s capital allocation is the shareholder yield. Many have heard the terms dividend yield and buyback yield. These two terms consider how much a firm spends on dividends and buybacks in relation to its market capitalization. They provide a gauge of how much capital a company is distributing back to its shareholders.
Shareholder yield combines these two metrics together and adds another lesser-discussed metric: debt paydown yield.
