Total shareholder yield combines the two ways a company hands cash back to owners: dividends paid out, and buybacks that shrink the share count. Companies choose their mix for different reasons. Dividends signal commitment and lock in a cash return, while buybacks are more flexible and tax-friendly. To a long-term owner, the economics work out about the same.
A steadily high shareholder yield (around 5% or more) on a quality business is one of the strongest signs that management treats outside owners as partners. Check it against the payout ratio and dividend coverage to make sure the cash being returned is real, not borrowed.