The Magic of Yield on Cost

[@MrJasonvanbrusselen]

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

[@JettyLife23]

"red" days are "buy more" days for me! If the companies are solid, add more!

[@mikemoore6409]

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

[@allegorical.studio]

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

[@parkerbarnard5046]

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.

[@skwiggsskytower2517]

An improvement in Yield on cost is just something to let you feel good about positions you took in the past. in your example, No. the current yield is based on the current price, regardless of the past. If the new stock has the same yield, then the amount of cashflow will be the same. Your Yield on cost would go down to 3% but that doesn't change anything in the present. Remember, past performance doesn't guarantee future performance.

[@InvestingBookSummaries]

Get in early, stay for a long time.

[@OnefiveRc]

This video was great!

[@trainstation-gameonrails9966]

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

[@juancervantes7829]

Thats awesome More people should watch ths video

[@Sam-ue4rv]

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

[@juancervantes7829]

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

[@zdenek3010]

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.