Is Yield on Cost a Useful Metric?

Yield on cost compares your current dividend income to the original price you paid for the stock.

Critics argue that yield on cost can distort investment decisions because it is based on a historical price.

Yield on cost does not reflect the current economic reality of your investment.

It is important to consider opportunity cost when evaluating investments.

Yield on cost can be useful for motivating long-term investors and tracking dividend growth over time.