Shareholder Yield Combines Buybacks, Dividends To See The Whole Board

In the daily grind of trying to predict which stocks will gain or lose ground, it’s easy to forget that a rising stock price isn’t the only way to benefit from owning equities. “Dividends, and their reinvestment, represent a major portion of a stock investor’s total return over time,” explains Mebane Faber in his new book Shareholder Yield: A Better Approach to Dividend Investing. An American investor with money in the market between 1871 and 2011 would have gotten 8.83% returns including reinvested dividends, but just 4.13% without them, and Faber wants to give people a framework to think about…