Why Use This Dividend Yield on Cost Calculator
Yield on Cost (YOC) is one of the most important metrics for long-term dividend investors. Our Dividend Yield on Cost Calculator helps you:
- 💰 Calculate YOC — see your effective yield based on your original purchase price.
- 📈 Compare YOC vs Current Yield — understand the true return on your investment.
- 📊 Project Dividend Growth — see how dividend increases boost your income over time.
- 🔒 100% Private — all calculations run locally in your browser.
What Is Dividend Yield on Cost (YOC)?
Yield on Cost (YOC) is the annual dividend income you receive divided by your original purchase price. It shows the effective yield you’re earning based on what you originally paid for the stock.
The Formula:
Yield on Cost = (Annual Dividend Per Share ÷ Purchase Price Per Share) × 100
Example:
| Variable | Value |
|---|---|
| Purchase Price Per Share | $50.00 |
| Annual Dividend Per Share | $2.00 |
| Yield on Cost | ($2.00 ÷ $50.00) × 100 = 4.00% |
YOC vs Current Yield
| Metric | Formula | What It Shows |
|---|---|---|
| Yield on Cost (YOC) | Dividend ÷ Purchase Price | Return on your original investment |
| Current Yield | Dividend ÷ Current Price | Return based on current market price |
Example (Stock Price Rises to $60):
| Metric | Value |
|---|---|
| Purchase Price | $50.00 |
| Current Price | $60.00 |
| Annual Dividend | $2.00 |
| Yield on Cost | 4.00% |
| Current Yield | 3.33% |
Your YOC remains 4% (based on what you paid), while current yield drops to 3.33% (based on the higher price).
How Dividend Growth Boosts YOC
| Year | Dividend | YOC (Based on $50 Purchase) |
|---|---|---|
| Year 1 | $2.00 | 4.00% |
| Year 5 | $2.55 | 5.10% |
| Year 10 | $3.26 | 6.52% |
| Year 15 | $4.16 | 8.32% |
| Year 20 | $5.31 | 10.62% |
As companies raise their dividends, your YOC grows — even though you originally paid the same price.
How to Use This Dividend Yield on Cost Calculator
- Enter your purchase price per share — the price you originally paid.
- Enter your shares held — how many shares you own.
- Enter the annual dividend per share — current annual dividend.
- Enter the expected dividend growth rate — how much you expect dividends to grow annually (optional).
- View your results — see your YOC, current yield, and projected income.
The tool updates instantly as you adjust any input — no “Calculate” button required.
Example: Long-Term Dividend Investing
Scenario: You bought 100 shares of a dividend stock at $50 per share ($5,000 total investment). The stock now pays $2.00 per share annually and has a 5% dividend growth rate.
| Metric | Value |
|---|---|
| Total Investment | $5,000 |
| Annual Dividend Income | $200 |
| Yield on Cost | 4.00% |
| Projected Income (Year 10) | $326 |
| YOC After 10 Years | 6.52% |
After 10 years of 5% dividend growth, your YOC has grown from 4% to 6.52% — all based on your original investment.
Frequently Asked Questions
What is dividend yield on cost (YOC)?
Dividend Yield on Cost (YOC) is the annual dividend income divided by your original purchase price. It shows the effective yield you’re earning based on what you originally paid for the stock.
How is yield on cost calculated?
Yield on Cost = (Annual Dividend Per Share ÷ Purchase Price Per Share) × 100.
What is the difference between yield on cost and current yield?
Yield on Cost is based on your original purchase price. Current Yield is based on the current market price. YOC grows over time as dividends increase.
Why is yield on cost important?
Yield on Cost shows the true return on your original investment. For long-term investors, YOC can grow significantly as companies increase dividends, often reaching 10% or more after many years.
How does dividend growth affect yield on cost?
As companies raise their dividends, your annual dividend income increases. Since your original cost basis stays the same, your yield on cost grows over time.
Is my data stored anywhere?
No. All calculations run locally in your browser. No data is sent to any server.