Dividend Yield-on-Cost Calculator

Yield on cost is the current annual dividend per share divided by the price you originally paid, rather than the current market price. It rises over time as a company raises its dividend.

Current yield uses today market price, so it reflects what a new buyer earns. Yield on cost uses your original purchase price, so it shows the return on your specific cost basis.

Not necessarily. Yield on cost says nothing about valuation or total return today. This figure is for planning only and is not investment advice.

There is no universal target, because yield on cost depends entirely on how long you have held and how fast the dividend has grown. A stock bought a decade ago from a steady dividend-grower can show a yield on cost of 8 to 12 percent even while its current yield sits near 2 to 3 percent. Compare it to your own purchase, not to other investors.

No. A high yield on cost reflects your low historical purchase price, not today's value. New money buys at the current yield, so base a fresh purchase decision on current yield, valuation, and growth prospects. Yield on cost is a rear-view measure of how a past decision has aged.

Yield on cost rises purely from dividend increases relative to your fixed original cost. A holding bought at a 3 percent yield that grows its dividend 7 percent a year roughly doubles its yield on cost in about ten years, which is why long-term holders of consistent dividend-growth stocks see the figure climb well above market yields.