Yield on Cost Calculator
Calculate your dividend yield on cost, comparing today's dividend to your original purchase price rather than the current share price.
Your results
Calculation breakdown
- Yield on cost
- current dividend per share ÷ original purchase price × 100
Worked example
You bought a share at $15.00 years ago, and it now pays $1.20 per share annually. Your yield on cost is 8%, even if the market yield on today's share price is lower.
Assumptions
- Use your weighted average purchase price if bought across multiple parcels.
- This is a personal income metric and differs from the market's current dividend yield.
- Does not account for tax payable on the dividend income.
How this calculator works
Yield on cost divides the current annual dividend per share by your original purchase price, showing your personal income return which can differ significantly from the market's current dividend yield after years of dividend growth. It is a popular way for long-term dividend investors to track how their income has grown relative to what they originally paid.
Frequently asked questions
How is yield on cost different from dividend yield?
Dividend yield uses the current share price, while yield on cost uses your original purchase price, so it rises over time as dividends grow even if the price also rises.
Why would yield on cost be higher than market yield?
This typically happens after holding a share for many years during which the dividend has grown well above your original entry price.
Does this work for shares bought in multiple parcels?
Use your weighted average purchase price from the Average Share Price calculator for the most accurate combined yield on cost.
Results are estimates only and are not financial, tax, legal or credit advice.