Yield on Cost Calculator

Calculate Yield on Cost



Yield on Cost Definition

A yield on cost is defined as the ratio of the current dividend of a stock to its initial purchase price. In other words, it measures the return on a stock with respect to its dividend.

Formula

The formula to calculate the yield on cost (YOC) is:

\[ YOC = \left( \frac{CD}{IC} \right) \times 100 \]

Where:

Example

Let's say the current dividend is $5 and the initial cost of the stock is $50. Using the formula:

\[ YOC = \left( \frac{5}{50} \right) \times 100 \]

We get:

\[ YOC = 10 \]

So, the yield on cost (\( YOC \)) is 10%.