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DMO's 5-Year Yield-on-Cost % is ranked better than 87.96% of 1113
companies
in the Asset Management industry
Industry Median: 6.51
vs DMO: 15.05
Western Asset Mortgage Defined Opportunity Fund (NYSE:DMO) 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.
Western Asset Mortgage Defined Opportunity Fund 5-Year Yield-on-Cost % Related Terms
DMO vs IAF, PFO, GGZ: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Western Asset Mortgage Defined Opportunity Fund'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.
Western Asset Mortgage Defined Opportunity Fund 5-Year Yield-on-Cost % vs Asset Management Industry
Western Asset Mortgage Defined Opportunity Fund 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.
Western Asset Mortgage Defined Opportunity Fund (DMO) has a 5-Year Yield-on-Cost % of 15.05 as of Jul. 29, 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 Western Asset Mortgage Defined Opportunity Fund and its competitors. This is 19% above median its historical median of 12.62. Over the past decade, Western Asset Mortgage Defined Opportunity Fund's 5-Year Yield-on-Cost % has ranged from 9.26 to 19.01. According to the industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #134 out of 1113 companies in the Asset Management industry, placing it in the top 12%.
Is Western Asset Mortgage Defined Opportunity Fund's 5-Year Yield-on-Cost % too high?
Western Asset Mortgage Defined Opportunity Fund's current 5-Year Yield-on-Cost % of 15.05 is 19% above median its 10-year median of 12.62. Over the past 10 years, this metric has ranged from a low of 9.26 to a high of 19.01. The Asset Management industry median 5-Year Yield-on-Cost % is 6.51. Western Asset Mortgage Defined Opportunity Fund's value of 15.05 is 131.2% above this industry median. Based on the distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #134 out of 1113 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Western Asset Mortgage Defined Opportunity Fund has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Asset Mortgage Defined Opportunity Fund's 5-Year Yield-on-Cost % compare to IAF and PFO?
According to the Asset Management industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #134 out of 1113 companies for 5-Year Yield-on-Cost %. This places Western Asset Mortgage Defined Opportunity Fund in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.51. Western Asset Mortgage Defined Opportunity Fund's value of 15.05 is 131.2% above this benchmark. Historically, Western Asset Mortgage Defined Opportunity Fund's own 5-Year Yield-on-Cost % has ranged from 9.26 to 19.01 over the past decade. While the company's 10-year median is 12.62 vs. the industry median of 6.51, Western Asset Mortgage Defined Opportunity Fund 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 Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.51, based on 1,113 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. Western Asset Mortgage Defined Opportunity Fund's current 5-Year Yield-on-Cost % of 15.05 is 131.2% 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 Western Asset Mortgage Defined Opportunity Fund and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Asset Mortgage Defined Opportunity Fund's current 5-Year Yield-on-Cost % is 15.05, which is 19% above median its own 10-year median of 12.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Asset Mortgage Defined Opportunity Fund stock overvalued right now?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund (DMO) is currently considered Fairly Valued. The stock's GF Value™ is $10.53, compared to a current price of $10.37 — trading 1.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 15.05, which is 19% above median its 10-year median of 12.62 and 131.2% above the Asset Management industry median of 6.51. Western Asset Mortgage Defined Opportunity Fund's overall GF Score™ is 54/100 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 Western Asset Mortgage Defined Opportunity Fund (DMO), the current 5-Year Yield-on-Cost % is 15.05 as of Jul. 29, 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 Western Asset Mortgage Defined Opportunity Fund (DMO) Overvalued in 2026?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund stock appears to be undervalued.
The current stock price of $10.37 is trading 1.5% below its estimated GF Value™ of $10.53.
GuruFocus considers Western Asset Mortgage Defined Opportunity Fund to be Fairly Valued.
Key valuation signals for DMO:
5-Year Yield-on-Cost %: 15.05 (19% above median its 10-year median of 12.62)
GF Value™: $10.53 vs. price of $10.37 (1.5% below fair value)
Industry Position: 131.2% above the Asset Management median (#134 of 1113)
No single metric tells the full story. See the DMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Asset Mortgage Defined Opportunity Fund Business Description
Western Asset Mortgage Defined Opportunity Fund Inc is a non-diversified, limited-term, closed-end management investment company. The fund's primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing in a diverse portfolio of mortgage-backed securities, consisting of non-agency residential mortgage-backed securities and commercial mortgage-backed securities.
54GF Score
Get the complete analysis for DMO
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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