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Donegal GroupDGICA +0.48%64 5-Year Yield-on-Cost % is 4.73 as of Jul. 18, 2026, which is 3% below its 10-year median of 4.87. GuruFocus rates DGICA with a GF Score™ of 64/100 and a GF Value™ of $14.07 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 417 Insurance companies, Donegal Group ranks better than 58.75% on this metric.
Donegal Group's yield on cost for the quarter that ended in Mar. 2026 was 4.73.
The historical rank and industry rank for Donegal Group's 5-Year Yield-on-Cost % or its related term are showing as below:
DGICA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.62 Med: 4.87 Max: 6.54
Current: 4.73
During the past 13 years, Donegal Group's highest Yield on Cost was 6.54. The lowest was 3.62. And the median was 4.87.
DGICA's 5-Year Yield-on-Cost % is ranked better than 58.75% of 417
companies
in the Insurance industry
Industry Median: 3.98
vs DGICA: 4.73
Donegal Group (NAS:DGICA) 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.
Donegal Group 5-Year Yield-on-Cost % Related Terms
DGICA vs HIPO, HRTG, ROOT: 5-Year Yield-on-Cost % Comparison
For the Insurance - Property & Casualty subindustry, Donegal 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.
Donegal Group 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, Donegal Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Donegal Group's 5-Year Yield-on-Cost % falls into.
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 Donegal Group is calculated as
Donegal Group (DGICA) has a 5-Year Yield-on-Cost % of 4.73 as of Jul. 18, 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 Donegal Group and its competitors. This is near median its historical median of 4.87. Over the past decade, Donegal Group's 5-Year Yield-on-Cost % has ranged from 3.62 to 6.54. According to the industry distribution chart, Donegal Group ranks #172 out of 417 companies in the Insurance industry, placing it in the top 41.2%.
Is Donegal Group's 5-Year Yield-on-Cost % too high?
Donegal Group's current 5-Year Yield-on-Cost % of 4.73 is near median its 10-year median of 4.87. Over the past 10 years, this metric has ranged from a low of 3.62 to a high of 6.54. The Insurance industry median 5-Year Yield-on-Cost % is 3.98. Donegal Group's value of 4.73 is 18.8% above this industry median. Based on the distribution chart, Donegal Group ranks #172 out of 417 companies in the Insurance industry, which is above the industry midpoint. Overall, Donegal Group has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Donegal Group's 5-Year Yield-on-Cost % compare to HIPO and HRTG?
According to the Insurance industry distribution chart, Donegal Group ranks #172 out of 417 companies for 5-Year Yield-on-Cost %. This puts Donegal Group in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.98. Donegal Group's value of 4.73 is 18.8% above this benchmark. Historically, Donegal Group's own 5-Year Yield-on-Cost % has ranged from 3.62 to 6.54 over the past decade. While the company's 10-year median is 4.87 vs. the industry median of 3.98, Donegal 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 3.98, based on 417 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. Donegal Group's current 5-Year Yield-on-Cost % of 4.73 is 18.8% 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 Donegal Group and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donegal Group's current 5-Year Yield-on-Cost % is 4.73, which is near median its own 10-year median of 4.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donegal Group stock overvalued right now?
Based on GuruFocus' analysis, Donegal Group (DGICA) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.07, compared to a current price of $18.71 — trading 33% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.73, which is near median its 10-year median of 4.87 and 18.8% above the Insurance industry median of 3.98. Donegal Group's overall GF Score™ is 64/100 with 5 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 Donegal Group (DGICA), the current 5-Year Yield-on-Cost % is 4.73 as of Jul. 18, 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 Donegal Group (DGICA) Overvalued in 2026?
Based on GuruFocus' analysis, Donegal Group stock appears to be overvalued.
The current stock price of $18.71 is trading 33% above its estimated GF Value™ of $14.07.
GuruFocus considers Donegal Group to be Significantly Overvalued.
Key valuation signals for DGICA:
5-Year Yield-on-Cost %: 4.73 (near median its 10-year median of 4.87)
GF Value™: $14.07 vs. price of $18.71 (33% above fair value)
Industry Position: 18.8% above the Insurance median (#172 of 417)
No single metric tells the full story. See the DGICA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Donegal Group Inc is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states. It includes three segments: Investments Function, Commercial Lines of Insurance, and Personal Lines of Insurance. The majority of revenue is from the commercial Lines segment. The commercial Lines segment consists mainly of commercial automobile, commercial multi-peril, and workers' compensation policies.
64GF Score
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