What Is Yield on Cost (YOC)?

The yield on cost (YOC) is a dividend yield calculation that divides a stock’s current dividend by the amount paid for it at the time of purchase. For example, if an investor bought a stock for $20 five years ago and the current dividend is $1.50 per share, the YOC for that investment is 7.5 percent.
The term “current dividend yield” should not be confused with YOC. The latter refers to the dividend payout split by the stock’s current price rather than the initial acquisition price.