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Two Harbors Investment Corp (NYSE:TWO)
Yield on Cost
49.41 (As of Sep. 2014)

Two Harbors Investment Corp's yield on cost for the quarter that ended in Sep. 2014 was 49.41.

TWO' s 10-Year Yield on Cost Range
Min: 13.76   Max: 94.99
Current: 49.41

13.76
94.99

During the past 7 years, Two Harbors Investment Corp's highest Yield on Cost was 94.99. The lowest was 13.76. And the median was 72.03.

TWO's Yield on Costis ranked higher than
98% of the 831 Companies
in the Global REIT - Residential industry.

( Industry Median: 4.77 vs. TWO: 49.41 )

Definition

Dividend Yield and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A'’s future dividend yield might be much higher than Company B’'s even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Two Harbors Investment Corp is calculated as

Yield-on-Cost=Dividend Yield*(1+Dividend Growth Rate)^5

Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Related Terms

Dividend Yield

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