WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR MeWe PAGE!


How Reinvesting Dividends Accelerates Yield on Cost

An article “How Yield on Cost Works” by David Van Knapp discussed the basic yet oft-misunderstood concept of yield on cost (YOC). In a nutshell, it explains why your personal yield from a dividend stock goes up as the company increases its dividends. The reason is because your personal yield is based—and always will be based—on the price you paid for the stock. That’s what the “C” in YOC stands for: Your cost. It is not affected by changes in the price of the stock after you bought it. If you make additional purchases, each new purchase has its own YOC.
Read the rest of this entry »





Leave a Reply

Your email address will not be published. Required fields are marked *