American Financial GroupAFG +1.44%80 5-Year Yield-on-Cost % is 4.29 as of Jul. 04, 2026, which is 50% above its 10-year median of 2.86. GuruFocus rates AFG with a GF Score™ of 80/100 and a GF Value™ of $126.76 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 424 Insurance companies, American Financial Group ranks better than 53.54% on this metric.
The historical rank and industry rank for American Financial Group's 5-Year Yield-on-Cost % or its related term are showing as below:
AFG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.97 Med: 2.86 Max: 5.74
Current: 4.29
During the past 13 years, American Financial Group's highest Yield on Cost was 5.74. The lowest was 1.97. And the median was 2.86.
AFG's 5-Year Yield-on-Cost % is ranked better than 53.54% of 424
companies
in the Insurance industry
Industry Median: 3.965
vs AFG: 4.29
American Financial Group (NYSE:AFG) 5-Year Yield-on-Cost % 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.
American Financial Group 5-Year Yield-on-Cost % Related Terms
AFG vs CNA, ORI, AIZ: 5-Year Yield-on-Cost % Comparison
For the Insurance - Property & Casualty subindustry, American Financial Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Financial Group 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where American Financial Group's 5-Year Yield-on-Cost % falls into.
American Financial Group 5-Year Yield-on-Cost % Calculation
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.
American Financial Group (AFG) has a 5-Year Yield-on-Cost % of 4.29 as of Jul. 04, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Financial Group and its competitors. This is 50% above median its historical median of 2.86. Over the past decade, American Financial Group's 5-Year Yield-on-Cost % has ranged from 1.97 to 5.74. According to the industry distribution chart, American Financial Group ranks #197 out of 424 companies in the Insurance industry, placing it in the top 46.5%.
Is American Financial Group's 5-Year Yield-on-Cost % too high?
American Financial Group's current 5-Year Yield-on-Cost % of 4.29 is 50% above median its 10-year median of 2.86. Over the past 10 years, this metric has ranged from a low of 1.97 to a high of 5.74. The Insurance industry median 5-Year Yield-on-Cost % is 3.97. American Financial Group's value of 4.29 is 8.2% above this industry median. Based on the distribution chart, American Financial Group ranks #197 out of 424 companies in the Insurance industry, which is above the industry midpoint. Overall, American Financial Group has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's 5-Year Yield-on-Cost % compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #197 out of 424 companies for 5-Year Yield-on-Cost %. This puts American Financial Group in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.97. American Financial Group's value of 4.29 is 8.2% above this benchmark. Historically, American Financial Group's own 5-Year Yield-on-Cost % has ranged from 1.97 to 5.74 over the past decade. While the company's 10-year median is 2.86 vs. the industry median of 3.97, American Financial Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Insurance company?
The median 5-Year Yield-on-Cost % among Insurance companies is 3.97, based on 424 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current 5-Year Yield-on-Cost % of 4.29 is 8.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Financial Group and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current 5-Year Yield-on-Cost % is 4.29, which is 50% above median its own 10-year median of 2.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Financial Group stock overvalued right now?
Based on GuruFocus' analysis, American Financial Group (AFG) is currently considered Modestly Overvalued. The stock's GF Value™ is $126.76, compared to a current price of $142.75 — trading 12.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.29, which is 50% above median its 10-year median of 2.86 and 8.2% above the Insurance industry median of 3.97. American Financial Group's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For American Financial Group (AFG), the current 5-Year Yield-on-Cost % is 4.29 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Financial Group (AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Financial Group stock appears to be overvalued.
The current stock price of $142.75 is trading 12.6% above its estimated GF Value™ of $126.76.
GuruFocus considers American Financial Group to be Modestly Overvalued.
Key valuation signals for AFG:
5-Year Yield-on-Cost %: 4.29 (50% above median its 10-year median of 2.86)
GF Value™: $126.76 vs. price of $142.75 (12.6% above fair value)
Industry Position: 8.2% above the Insurance median (#197 of 424)
No single metric tells the full story. See the AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Financial Group Inc is an insurance holding company. Through its subsidiaries, it is engaged in the property and casualty insurance business, focusing on specialized commercial products for businesses. The group operates through two segments: Property and Casualty Insurance, which generates maximum revenue, and Other. The Property and Casualty Insurance segment is further divided into different sub-segments, such as Property and transportation, Specialty casualty, and Specialty financial. These sub-segments offer insurance coverage for vehicles and commercial property, customized programs for small to mid-sized businesses, workers' compensation insurance, risk management insurance programs for lending and leasing institutions, trade credit insurance, and other insurance products.
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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