Shareholder Yield: Are The Companies You're Invested In Investing In You?

INTRODUCTION Since I have begun managing my own investments, I have loved reading a vast array of financial literature to help educate myself. The book "The Neatest Little Guide to Stock Market Investing (2013 Edition)" by Jason Kelly was recommended by a blogger that I follow and within its pages I read this interesting concept called "Shareholder Yield". As found in the book: "According to James O'Shaughnessy's explanation: … To create shareholder yield, you add the current dividend yield of the stock to any net buyback activity the company has engaged in over the prior year. If, for example, a company trading at $40 a share is paying an annual dividend of $1, the company would have a dividend yield of 2.5 percent. If that same company engaged in no stock buybacks over the year, its shareholder yield would equal 2.5 percent, the same as the dividend yield. If, however,... Read more