DAC Insights: Dividend Growth: Yield on Costs

Dividend Assets Capital believes that dividend growth is one of the best indicators of future price performance of a stock. When dividends are paid consistently, at an increasing rate over the long-term, this is likely to exert a positive movement of price performance. We can illustrate how this dividend growth may affect the investment outcome of various dividend paying stocks simply by comparing their 10-year “Yield On Cost.”