My dividend Yield on Costs on the acquired stock positions stands at 3.9 %, adding USD 140 to my projected annual dividend income.
With Heineken you don't get a high
dividend yield on costs when you enter into the position, neither strong annual dividend growth.
Current YOC: My personal
dividend yield on cost when factoring in my average purchase prices with the annual dividend as it currently stands..
Financial fundamentals are pretty sound and I've been more than pleased to enter into that interesting position, offering me a forward
dividend yield on cost of well above 5.5 %.
This includes a 2.32 %
dividend yield on cost.
An important point for my buying decision is as well
the dividend yield on cost, which is currently at 2.73 % based on the new yearly dividend of 3.36 USD.
I don't for a moment think TLS will be a 10 - bagger but if it grows steadily, it will provide a good
dividend yield on cost with some decent price appreciation.
First, let's have a look at the group of «dividend growers» with quite remarkable increases and let's also have a look at the projected
dividend yield on cost (YoC) with regard to these postitions (net of taxes).
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.
After a decade of
dividend growth and patient
dividend reinvestment, this investment is generating an
yield on cost of 15 %.
As you can see in the chart above, December's purchases resulted in a total increase of $ 8.27 to my forward 12 - month
dividends and carried an overall average
yield on cost of 2.18 %.
While you can find plenty of stocks with higher
yields, General Dynamics» double - digit
dividend growth rate implies that over time, investors could collect a much higher
yield on cost.
I know
yield on cost isn't the best metric, but
dividend growth is always nice.
Through goal # 4 I track my forward
dividend income (goal # 2) as a percentage of my portfolio — i.e. my
yield on cost (YOC).
Raising the
dividend will greatly improve you're
yield on cost, or YoC.
HSBC offers a
Dividend Reinvestment Plan (DRIP) and given the high
yield on cost, my share count will inrease nicely over time.
After holding for three years I realized that my other
dividend growth investments had a higher
yield on cost and the difference was only going to get greater as time went
on.
Essentially, the new rental income generated by the properties bought with new debt or issued shares isn't high enough (due to low cash
yields on new properties) to offset the greater share count, which raises the
cost of the
dividend.
The higher
dividend yield (4.1 %)
on this purchase increases my Ford
yield on cost from 3.77 % to 3.86 % * and my portfolio
yield on cost went from 3.51 % to 3.53 %.
Unfortunately my portfolio
yield on cost decreased from 3.18 % to 3.08 % but again,
dividend growth should bring it right back up very soon.
This purchase brings my
Dividend Retirement portfolio
yield on cost down to 3.17 % from 3.25 %.
It's the investor who has held a stock for twenty years and has seen their
dividend yield -
on -
cost march its way up to 40 % of their initial purchase price who gets to enjoy compounding's magic.
Yield on Cost (YOC) is the annual dividend rate of a security, divided by its average cost ba
Cost (YOC) is the annual
dividend rate of a security, divided by its average
cost ba
cost basis.
(
Yield on cost is today's
dividend divided by your original purchase price.)
If the number of shares owned by the investor does not change, the
yield on cost will increase if the company increases the
dividend it pays to shareholders; otherwise
yield on cost will remain constant.
To calculate
yield on cost for a stock, an investor must divide the stock's annual
dividend by the average
cost basis per share and multiple the resulting number by 100 (to arrive at a percentage).
I know
yield on cost isn't the best metric, but
dividend growth is always nice.
Ryan @ CML presents How to Calculate the
Yield on Cost of a Dividend Stock posted at Cash Money Life, saying, «Tips on calculating the yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing.&r
Yield on Cost of a Dividend Stock posted at Cash Money Life, saying, «Tips on calculating the yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing.&ra
Cost of a
Dividend Stock posted at Cash Money Life, saying, «Tips on calculating the yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing
Dividend Stock posted at Cash Money Life, saying, «Tips
on calculating the
yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing.&r
yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing.&ra
cost of a
dividend stock, an important indicator of how your dividend portfolio is performing
dividend stock, an important indicator of how your
dividend portfolio is performing
dividend portfolio is performing.»
The investor who is focused only
on the
dividend will enthusiastically point out that his income has risen by 5 % every year, and that he's now earning a 6.5 %
yield on cost.
In an RRSP, you will pay a 15 % withholding tax
on dividends if you use VUN (this works out to a
cost of 0.30 %, assuming a 2 %
yield).
Dividend investors dwell
on their «growing income» and «increasing
yield on cost» as though these are unique to their strategy.
Adding 84 shares of OHI to my
Dividend Retirement portfolio increases my portfolio
yield on cost to 3.33 % (from 3.08 %), a very nice boost.
I took a slight hit
on portfolio
yield on cost but nothing a 50 %
dividend growth rate can't fix.
Since we launched Cabot
Dividend Investor in 2014, our top recommendations have delivered 50 % total returns with a
yield on cost of 3.7 % while our top income recommendations have delivered
yields as high as 6.7 %.
If this
dividend growth rate continues my
yield on cost would be almost 9 % in 5 years!
The
dividend is cut in half as well, so the
yield on cost stays the same.
Growing
dividends over time incrementally increases
yield on cost, and for the
dividend growth investor, Enbridge's growth prospects are unique.
Yield on cost is part of the magic sauce that makes
dividend growth investing work so well long term.
This corresponded to an annual
dividend of $ 1.08 / share, for an effective
yield on cost of 7.10 %.
My initial
yield on cost for this
dividend portfolio was 3.54 % and my expected annual income was $ 951.80 (before raises — see below).
So my goal of 10 %
yield on cost within 10 years becomes this specific target: I want the DGP to be generating
dividends at a rate of $ 4678 annually by June 1, 2018.
This disparity results from the fact that REITs: 1) often focus
on institutional quality assets and markets that have relatively low
yields; 2) have corporate overhead
costs to cover; and 3) want to avoid the risk of having to lower their
dividends in the future — and thus only pay out a conservative level they believe to be sustainable.
The «
yield on cost» illusion is explained well here by Canadian Couch Potato in his series of
Dividend Myths.
In this lesson, let's talk about two essential metrics in
dividend growth investing:
Yield and yield on
Yield and
yield on
yield on cost.
That allows me to make some projections regarding organic
dividend growth and my expected
Yield on Cost (YoC) in 2017 regarding these positions which I sumarised in the chart above.
That allows me to make some projections regarding organic
dividend growth and my expected
Yield on Cost (YoC) regarding each position (see chart above).
Yes, your income should go up each each year — McCormick is a fantastic
dividend grower — but because you're starting with such a low entry
yield it will take a decade before you're generating meaningful
yield -
on -
cost.
If the
dividend increases continue at this rate I can expect a
yield on cost of ~ 4.8 % in 5 years.
I think I've made my point above that the average
cost basis must include reinvested
dividends, so by definition the «purchased shares» method more accurately measures
yield on cost.
(Will you pay $ 650 or $ 750 for the same 100 shares)(
Yield helps to determine if one could get a better investment for that extra $ 100 in another stock) Once you purchase the stock, you focus on «yield on cost» (If dividends go up, your «Yield on Cost» goes up, if the dividend remains the same then your «Yield on Cost» remains the s
Yield helps to determine if one could get a better investment for that extra $ 100 in another stock) Once you purchase the stock, you focus
on «
yield on cost» (If dividends go up, your «Yield on Cost» goes up, if the dividend remains the same then your «Yield on Cost» remains the s
yield on cost» (If dividends go up, your «Yield on Cost» goes up, if the dividend remains the same then your «Yield on Cost» remains the sa
cost» (If
dividends go up, your «
Yield on Cost» goes up, if the dividend remains the same then your «Yield on Cost» remains the s
Yield on Cost» goes up, if the dividend remains the same then your «Yield on Cost» remains the sa
Cost» goes up, if the
dividend remains the same then your «
Yield on Cost» remains the s
Yield on Cost» remains the sa
Cost» remains the same).