Dividend education for Canada and the US · no stock picks · rules checked October 31, 2026Part of the MITEY network
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Calculator · Canada & US

Yield on cost calculator

Calculate yield on cost from your purchase price and current dividend, and see how dividend growth could change it over 5 to 30 years.

Yield on cost shows how far your income has grown. It does not tell you what the money could earn somewhere else today.
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Your numbers

Result

Yield on cost
6%
Today's yield
3.46%
Yield on cost in 15 yrs
12.47%
Projected yield on costYield on cost rising from 6% at 5% dividend growth per year.0%25%50%75%100%Y0Y2Y4Y6Y8Y10Y12Y14Y15
  • Yield on cost (steady growth, no cuts)
  • Today's yield on market value

Yield on cost compares today's dividend with what you paid. Today's yield is what the position earns on its current value, which is what matters when comparing it with alternatives.

Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.

How to use it

  1. Enter your average cost per share and the current annual dividend per share.
  2. Add today's price to compare yield on cost with today's yield.
  3. Choose a growth rate and number of years to see how yield on cost would change if the dividend grew steadily.

Method and limits

  • Yield on cost = current annual dividend per share ÷ original cost per share.
  • Projected yield on cost = today's yield on cost × (1 + growth)^years, assuming steady growth, no cuts and no new purchases.
  • Opportunity view: today's yield shows what the same dividend pays on today's market value, which is what you would earn if you bought the position fresh.

Frequently asked questions

Is a high yield on cost a good sign?
It shows the dividend has grown since you bought. It says nothing about whether the company can keep paying, or whether today's value would earn more elsewhere. Look at payout ratio, cash flow and today's yield alongside it.
What if I bought in several lots?
Use your average cost per share (total cost ÷ total shares). In Canada, your adjusted cost base from your records is a sensible input; reinvested dividends raise it.
Does a dividend cut lower yield on cost?
Yes. Yield on cost moves with the dividend. If the dividend is cut in half, yield on cost halves too, whatever you paid.