Yield on Cost Calculator

How it is calculated

The tool divides the current annual dividend per share by what you originally paid per share: YOC = annual dividend per share ÷ cost basis per share × 100. Both amounts are per share and in the same currency. The dividend may be zero but not negative, and the cost basis must be above zero. It also converts the dividend into annual income on 100 shares, dividend × 100, to make the figure concrete. Use the total of the last four quarterly payments, or the current quarterly dividend multiplied by 4. The result is before tax and takes no account of price changes, fees or the date you bought, so it describes your income against your cost, not the stock's return.

Common mistakes

• Comparing YOC with the current dividend yield of other stocks. YOC uses your own purchase price, so a new investor cannot earn it; compare today's yield when choosing a new purchase.
• Entering the market price instead of what you paid. That would just give the current yield, not yield on cost.
• Using a quarterly dividend as the annual figure. The field is the annual dividend per share, so multiply a quarterly payment by 4.
• Using the total dividend for your whole holding together with the cost per share. Both must be per share, or both for the whole position.
• Ignoring reinvestment and special dividends. Reinvested dividends change your average cost per share, and a one-time special dividend would inflate the annual figure if you include it.