Shareholder Yield
Calculate the total shareholder yield, a valuation ratio that combines the dividend yield and the buyback yield to measure the total cash returned to shareholders relative to the company’s market capitalization.
The formula is as follows:
\[\text{Shareholder Yield} = \text{Dividend Yield} + \text{Buyback Yield}\]The buyback yield is net of the shares issued, so the shareholder yield is the net payout yield of Boudoukh, Michaely, Richardson and Roberts (2007): dividends plus repurchases minus issuance, relative to the market capitalization, which predicts returns better than the dividend yield alone.
Also known as: total shareholder yield, total return of capital, net payout yield.
Shareholder Yield in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_shareholder_yield as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["HD", "LOW"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_shareholder_yield()
Or, after setting up the Finance Toolkit MCP, ask:
What shareholder yield, dividends plus net buybacks, did Home Depot and Lowe's offer from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| HD | 0.0489 | 0.0439 | 0.0461 | 0.0238 |
| LOW | 0.0829 | 0.1309 | 0.0665 | 0.0472 |
Parameters
get_shareholder_yield accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
diluted | bool | Whether to use diluted shares in the calculation. Defaults to True. | False |
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses the trailing twelve months (4 quarters) with quarterly data and single years with annual data. | 4 |