Yield on Cost (YOC) highlights the power of dividend growth over long horizons. If you purchase a stock for $100 and it pays a $3 dividend, your yield is 3%. If, ten years later, the company has grown and now pays a $10 dividend, your *Yield on Cost* is 10%, even if the current market price implies a lower trailing yield.
For long-term dividend growth investors, YOC serves as an emotional anchor demonstrating how powerful compounding cash-flow operations can become.
On StressTest.pro, the Income Simulation tool models how your yield on cost scales over a decade assuming natural historical dividend hikes.