Comments on: Measuring Progress – Yield on Cost or Dividend Yield http://www.tipblog.in/strategy/measuring-progress-yield-on-cost/ Dividends and Value Investing for Sustainable Returns Mon, 30 Jan 2012 21:24:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: TIP Guy http://www.tipblog.in/strategy/measuring-progress-yield-on-cost/comment-page-1/#comment-3686 TIP Guy Fri, 12 Nov 2010 07:15:07 +0000 http://www.theincomeportfolio.com/?p=134#comment-3686 Hello Young, Thanks!. Dividend Yield is based on current market price. And hence it changes daily. And you don't know, if current year dividend would be same? So you may buy with 10% dividend yield (because dividend was paid last year). But at the end of this year, dividend could be less or zero. YOC is what you get. Once you buy, you cost basis remains fixed. YOC is relevant only if you plan to hold longer than 4 or 5 years. Not relevant for less than that. Best Wishes, Best Wishes. Hello Young,

Thanks!. Dividend Yield is based on current market price. And hence it changes daily. And you don’t know, if current year dividend would be same? So you may buy with 10% dividend yield (because dividend was paid last year). But at the end of this year, dividend could be less or zero.

YOC is what you get. Once you buy, you cost basis remains fixed. YOC is relevant only if you plan to hold longer than 4 or 5 years. Not relevant for less than that.

Best Wishes,

Best Wishes.

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