Can someone help clear up a question I have for yield on cost? Lets say, I have owned a stock for 10 years and my yield on cost is now 30%. But, with the stock has a current dividend yield of 3%. If I was to sell my shares and purchase another stock with a dividend yield of 3%, I would have drastically less cash flow right? Even though each stock has the same current yield? The original stock would return more to my pocket in cash flow because of a higher yield on cost? Im asking this question incase I ever rebalance stocks.

I couldn't get one of my financial planners to understand this very basic concept. Now I manage my own money and reinvest the dividends and I don't mind at all that the stock prices are down now. If I lived in Canada you would be my advisor

I watched a few videos on yield on cost but none of them explained it so well. Thank you!

Nicely explained.

Clearest explanation so far.

There's a lot of information missing at just the right times. Although it really is a good video. 2nd time watching. Good job

Thats awesome More people should watch ths video

The idea of financial freedom is great, but I don't think I'll want to give up work haha, maybe I'm just a workaholic. However, I would like to have an income generating portfolio that generates an income to give me the choice to be free to travel around the world, idealistic I know... it's the idea that counts. As Freddie says 'Born to be Free'.💪

Yield on cost is like the Compounding interest of dividend investing? Also the share price will go up with the dividend payout? Getting 6% a year dividend plus 3% growth is a great 10% a year return.. imagine buying Coke at £2 Dollars and now its at £55 the yield on cost including Warren Buffet is a happy man Lol

If one minus the dividend amount from the actual invested amount the cost of share investment goes down and the yield goes up.

This is an amazing conceptual video, helped me understand in more depth. Thank you!

nice explanation

Great graphics. Good job.

Using different metrics to change the numbers is a method that should only appeal to stupid people. Im in no way against dividend stocks (to be honest, I prefer dividend stocks over non dividend ones) but IRR should be the metric to be used as it can be used to compare different types of investment. Yield on Cost has no meaning as it has no comparative usage.

Get in early, stay for a long time.

wow now i dont feel like such a loser when i see all of my stocks in the red. excellent video!

This video was great!