Yield on Cost
Abbreviation: YOC
Plain-English definition
Current annual dividends per share divided by the investor's stated historical cost per share. It differs from yield based on today's market price.
Why it matters
It describes income relative to past cost, not the return available on the position's current value.
Example
At $10 original cost, a $1 annual dividend gives 10% yield on cost. At a $20 current price, current yield is 5%.
How income investors use it
Keep cost assumptions explicit, especially after reinvestment. Do not use a high historical yield on cost as proof that holding remains attractive.
This material is general education, not individualized investment, tax, or legal advice.