My current Yield on Cost (YoC) for the whole stock portfolio (consisting of around 35 positions) is slightly above 3.5 %.
Also
my current yield on my cost base is 4.45 % and I am only holding 1 REIT (H&R).
Not exact matches
I want to share the
current state of my dividend portfolio, related to market value, forward - looking dividends,
yield and
yield on cost.
In general, when I experience a massive sell off in one of my holdings, and I still believe in the company / industry as a whole, I simply buy more and average down my
cost and enjoy a higher
yield on my
current buy.
One difference between
yield on cost and
current yield is that
yield on cost is helpful when understanding the income performance of an existing investment.
Current YOC: My personal dividend
yield on cost when factoring in my average purchase prices with the annual dividend as it currently stands..
Index A published interest rate against which lenders measure the difference between the
current interest rate
on an adjustable rate mortgage and that earned by other investments (such as one, three, and five year U.S. Treasury security
yields, the monthly average interest rate
on loans closed by savings and loan institutions, and the monthly average
costs - of - funds incurred by savings and loans), which is then used to adjust the interest rate
on an adjustable mortgage up or down.
The
yield is usually expressed as an annual percentage rate based
on the investment's
cost,
current market value or face value.
What I shoot for is approximately 4 %
current yield with a long - range goal: I want the portfolio to achieve a 10 %
yield on cost within 10 years.
But when the
current yield is a paltry 0.7 %, it takes a lot of growth to even get to a decent
yield on cost.
In short, you want to put your money to work for you in high - quality dividend growth stocks for their safety and growing dividend stream... but their
current yields are so suppressed today that you'd potentially have to wait a whole decade before being able to capture a double - digit
yield -
on -
cost.
Why is the
yield on cost so much more than the
current yield?
That is, while VIG
yields a mere 2 % at
current prices, as the fund's constituents hike their payouts over time, holders of this ETF will enjoy a better
yield based
on their original buy - in
cost.
Notice that the 5.9 %
yield on cost is a full 48 % more than the portfolio's
current yield of 4.0 %.
But the portfolio's
yield on cost has now ballooned to a
current run - rate of 5.9 %, or more than 2.8 times what it delivered in its first year of existence.
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If the
yields on Treasuries continue
on their
current trajectory then borrowing
costs for mortgages and student loans will increase.
On the other hand, I am being compensated for continuing to hold BBEP by the distribution; on my cost, BBEP has a current yield of close to 20 % and this continues to grow: distributions have increased from $.4175 for the 1stquarter of 2011 to $.4225 for the 2ndquarter, to $.435 for the 3rd quarter to $.45 for the 4th quarter, almost an 8 % annual increas
On the other hand, I am being compensated for continuing to hold BBEP by the distribution;
on my cost, BBEP has a current yield of close to 20 % and this continues to grow: distributions have increased from $.4175 for the 1stquarter of 2011 to $.4225 for the 2ndquarter, to $.435 for the 3rd quarter to $.45 for the 4th quarter, almost an 8 % annual increas
on my
cost, BBEP has a
current yield of close to 20 % and this continues to grow: distributions have increased from $.4175 for the 1stquarter of 2011 to $.4225 for the 2ndquarter, to $.435 for the 3rd quarter to $.45 for the 4th quarter, almost an 8 % annual increase.
Using the
current years Dividend Growth rate of 2 % and projecting 2 % forward the annual dividend income in 10 yrs would be $ 0.00 with a
yield on cost % of 3.00 %
My
yield on cost was at 4 % also but I look at
current yield, because that's the
yield I'm getting
on the market value if I sell.