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Total Returns Are Nice, but We Prefer Dividend Yields

Last weekend, Barron’s ran an article about total yield, which encompasses dividends and share buybacks.

Buyback yield quantifies the impact of stock repurchases at the share ownership level. In our Stock Investor Pro stock screening program, we calculate the buyback yield as the change in share count for the current period versus the past period. For example, if a stock had 90 million average shares outstanding in the second quarter of 2014 and had 100 million average shares outstanding in the second quarter of 2013, the buyback yield would be 10%.

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