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yield_on_cost 2015/12/07 07:11 yield_on_cost 2015/12/08 12:18 current
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==== Yield on Cost ==== ==== Yield on Cost ====
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  * OUR YOC's - A list of the 22 common stocks we own (never preferred) with their YOC, start dividend rate and price were outlined in Connolly Report of August 2011. Eight have double digit YOCs. Driven by dividend growth, our prices are now well over one million dollars. I never would have dreamed.   * OUR YOC's - A list of the 22 common stocks we own (never preferred) with their YOC, start dividend rate and price were outlined in Connolly Report of August 2011. Eight have double digit YOCs. Driven by dividend growth, our prices are now well over one million dollars. I never would have dreamed.
  * We purchased, luckily, some Great West Life in March 2009 for $14.18 per share. The dividend was, and still is, $1.23. the yield is therefore 8.7%. The current price (Nov 2013) happens to be $33 a share. With the higher price, the yield is now 3.7%. Neither of these things change our yield, do they? Our yield is still 8.7%. Suppose though, that the dividend had increased over the last few years. The income on our investment would be up and so would our yield be up.   * We purchased, luckily, some Great West Life in March 2009 for $14.18 per share. The dividend was, and still is, $1.23. the yield is therefore 8.7%. The current price (Nov 2013) happens to be $33 a share. With the higher price, the yield is now 3.7%. Neither of these things change our yield, do they? Our yield is still 8.7%. Suppose though, that the dividend had increased over the last few years. The income on our investment would be up and so would our yield be up.
 +  * "With each dividend increase, the return on invested capital grows higher." Geraldine Weiss, IQ Trends
  * Some people who do not 'believe' in YOC argue that what happened ten or 15 years ago is not always a good indicator of the future. That's true. I'm not saying that YOC is an good indicator of the future. However, if the dividend has grown since purchase, YOC is a good indicator the company is doing well. If a company has a 'culture' of increasing its dividend the pattern could easily continue. ♣ If folks are not using YOC to to measure because it is rooted in the past, how do they measure their returns? Do they not use a past-connected number also. Growing yield is the essence of what the dividend growth strategy is about. Growing yield drives returns. If the yield does not grow, essentially, you have a bond.   * Some people who do not 'believe' in YOC argue that what happened ten or 15 years ago is not always a good indicator of the future. That's true. I'm not saying that YOC is an good indicator of the future. However, if the dividend has grown since purchase, YOC is a good indicator the company is doing well. If a company has a 'culture' of increasing its dividend the pattern could easily continue. ♣ If folks are not using YOC to to measure because it is rooted in the past, how do they measure their returns? Do they not use a past-connected number also. Growing yield is the essence of what the dividend growth strategy is about. Growing yield drives returns. If the yield does not grow, essentially, you have a bond.
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