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Warren Buffett's Big Bet on Lennar Highlights an Overlooked Metric Every Investor Should Watch
['Keith Speights']
The Motley Fool
I think Buffett's big bet on Lennar highlights an often overlooked metric that every investor should watch.
However, there's a somewhat similar metric that doesn't get the attention it deserves: shareholder yield.
That gives the homebuilder a dividend yield of around 1.6% -- respectable, but not anything to get excited about.
If we add the company's dividend yield of 1.6% and its estimated stock buyback yield of 7.1%, Lennar's shareholder yield is 8.7%.
To put that number into perspective, the shareholder yield of the S&P 500 (SNPINDEX: ^GSPC) is around 2.8%.