Strategies · Core
Net Payout Yield Effect
Long high net-payout (dividends plus net buybacks) names and short low/negative payout — shareholder yield as a value/quality hybrid.
Definition
Net payout = dividends + buybacks − issuance, over market cap. Long the high-yield bucket, short the issuers. Yearly rebalance is common. It blends value (cheap cash return) and a quality/issuance signal.
Why it matters
Gross dividend yield misses the US buyback era. Net payout is the honest cash-return sort.
Case
A 2021 buyback binge at cycle highs: the signal bought the top. Payout yield without a valuation or cycle check is pro-cyclical.
How to read it
Gross vs net, financials, and whether issuance is the short. One-year buyback spikes are not a stable yield.
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