See how your effective dividend yield grows as companies raise their payouts
Original Yield
3%
When you bought
Yield on Cost
7.19%
After 15 years
Annual Income
$719
From $10,000 invested
Yield Increase
2.4x
Higher than original
The yield when you first purchased
Dividend Aristocrats avg ~6%
Example Stocks
Total Dividends Received
$7,402
Over 15 years
Dividend Payback
74%
Of original investment returned as dividends
| Year | Dividend/Share | Annual Income | Yield on Cost | Cumulative |
|---|---|---|---|---|
| 1 | $1.06 | $318 | 3.18% | $318 |
| 2 | $1.12 | $337 | 3.37% | $655 |
| 3 | $1.19 | $357 | 3.57% | $1,012 |
| 4 | $1.26 | $379 | 3.79% | $1,391 |
| 5 | $1.34 | $401 | 4.01% | $1,793 |
| 10 | $1.79 | $537 | 5.37% | $4,191 |
| 15 | $2.40 | $719 | 7.19% | $7,402 |
Yield on Cost (YoC) measures your dividend yield based on your original purchase price, not the current stock price. As companies raise their dividends, your YoC increases even though you paid the same price.
YoC = (Current Annual Dividend / Original Purchase Price) × 100
A stock bought at 3% yield with 7% annual dividend growth will have a 10.5% YoC after 20 years—more than triple the original yield!
The best time to start was yesterday. The second best time is now.