Zip Co (ASX:ZIP) 5-Year Yield-on-Cost % : 0.00 (As of Jun. 09, 2024)

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What is Zip Co 5-Year Yield-on-Cost %?

Zip Co's yield on cost for the quarter that ended in Dec. 2023 was 0.00.

The historical rank and industry rank for Zip Co's 5-Year Yield-on-Cost % or its related term are showing as below:

ASX:ZIP's 5-Year Yield-on-Cost % is not ranked ^*
in the Credit Services industry.
Industry Median: 4.425
* Ranked among companies with meaningful 5-Year Yield-on-Cost % only.

Competitive Comparison of Zip Co's 5-Year Yield-on-Cost %

For the Credit Services subindustry, Zip Co'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.

Zip Co's 5-Year Yield-on-Cost % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Zip Co's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Zip Co's 5-Year Yield-on-Cost % falls into.

Zip Co 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.

Therefore, Yield-on-Cost of Zip Co is calculated as

Yield-on-Cost

Dividend Yield %

Dividend Growth Rate)^5

Zip Co (ASX:ZIP) 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.

Zip Co 5-Year Yield-on-Cost % Related Terms

Thank you for viewing the detailed overview of Zip Co's 5-Year Yield-on-Cost % provided by GuruFocus.com. Please click on the following links to see related term pages.

Zip Co (ASX:ZIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (ASX:ZIP) » Definitions » 5-Year Yield-on-Cost %

Comparable Companies

Traded in Other Exchanges

ZIZTF:USA

Address

126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.zipmoneylimited.com.au

Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.