International Shareholder Yield is Live!
Meb and team launched an international version of his shareholder yield ETF. Very cool.
I’m most impressed with the logo–last time I saw an elephant that colorful was at an Indian wedding!
It is nice to see someone turning academic insight into investment performance.
Jack and I wrote a paper on ways to enhance yield-based strategies (forthcoming in the Journal of Investing).
Shareholder yield, or combining dividends, net repurchases, and net debt paydown has historically worked the best.
High dividend yield stocks do not reliably earn above-average risk-adjusted returns. More complete measures of shareholder yield, which account for net share repurchases, perform better. We explore the use of net-debt paydown as a way to further enhance shareholder yield. The addition of net-debt paydown enhances risk-adjusted returns and creates a shareholder yield metric that is more robust over time. We also explore the technique of separating yield metrics by payout percentage as a way to enhance return predictability. We find some evidence that using payout percentage within a yield category can systematically improve portfolio performance.
I guess time will tell if shareholder yield can beat the old-fashioned dividend yield…and now we have data from an ETF to empirically test it! Great.
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Definitions of common statistics used in our analysis are available here (towards the bottom)