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..
A Cheat Sheet about Initial Yield, Dividend Growth Rate, and
Yield on Cost When you first start a portfolio, its initial yield is the same as its yield on cost.
Not exact matches
Yield on cost is the portfolio's yield calculated as a percentage of the original money invested when I started the portf
Yield on cost is the portfolio's
yield calculated as a percentage of the original money invested when I started the portf
yield calculated as a percentage of the original money invested
when I started the portfolio.
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.
In an article in 2012, I explained that
yield on cost is not relevant
when considering a sale.
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.
Funding
costs are rising at a time
when yields on investment are falling due an glut of capital in the space.
Yield on cost is the portfolio's yield calculated as a percentage of the original money invested when I started the portf
Yield on cost is the portfolio's
yield calculated as a percentage of the original money invested when I started the portf
yield calculated as a percentage of the original money invested
when I started the portfolio.
That is another step
on the road to meeting the portfolio's goal of achieving 10 %
yield on cost within 10 years from
when I began the portfolio in 2008.
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.
(If I purchase today at 3 % and tomorrow the stock price increases so it
yields 2.5 %, I still get 3 %
on that money) The
yield matters
when you purchase it and should be a factor if you are investing for income as it determines the
cost of capital for the dividend received.
This goal is known as 10 by 10: That means generating a
yield on cost of 10 % within 10 years of
when you start the portfolio.
For example, a stock
yielding 5 %
when you buy it will reach 10 %
yield on cost in 10 years if it increases its dividend 7 % per year.
But investors who bought in 10 years ago —
when the company's 3.75 - cent quarterly payout represented just a 1.6 %
yield — are now enjoying a
yield on cost of more than 7 %!
More
on MoneyWatch: Active Bond Managers Fare No Better The Economy Isn't the Same as the Market Why the Concern over Negative TIPS
Yields Is Overblown
When Dollar -
Cost Averaging Makes Sense
When Dollar -
Cost Averaging Doesn't Make Sense Hear Larry Swedroe discuss current investment trends and topics every Sunday at noon
on 550 AM KTRS in St. Louis or streaming via the KTRS Web site.
When those offsets never materialized, the farms stayed
on track due to improved soils,
yields and lower
costs.