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MGIC InvestmentFRA:MGC +3.28%90 5-Year Yield-on-Cost % is 5.06 as of Jul. 18, 2026, which is 3% above its 10-year median of 4.92. GuruFocus rates FRA:MGC with a GF Score™ of 90/100 and a GF Value™ of €24.19 (Fairly Valued). The stock has 6 warning signs investors should review. Among 417 Insurance companies, MGIC Investment ranks better than 61.39% on this metric.
MGIC Investment's yield on cost for the quarter that ended in Mar. 2026 was 5.06.
The historical rank and industry rank for MGIC Investment's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:MGC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1 Med: 4.92 Max: 8.64
Current: 5.06
During the past 13 years, MGIC Investment's highest Yield on Cost was 8.64. The lowest was 1.00. And the median was 4.92.
FRA:MGC's 5-Year Yield-on-Cost % is ranked better than 61.39% of 417
companies
in the Insurance industry
Industry Median: 3.98
vs FRA:MGC: 5.06
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.
MGIC Investment 5-Year Yield-on-Cost % Related Terms
FRA:MGC vs ESNT, ACT, RYAN: 5-Year Yield-on-Cost % Comparison
For the Insurance - Specialty subindustry, MGIC Investment'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.
MGIC Investment 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, MGIC Investment's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where MGIC Investment'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 MGIC Investment is calculated as
MGIC Investment (FRA:MGC) has a 5-Year Yield-on-Cost % of 5.06 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 MGIC Investment and its competitors. This is near median its historical median of 4.92. Over the past decade, MGIC Investment's 5-Year Yield-on-Cost % has ranged from 1.00 to 8.64. According to the industry distribution chart, MGIC Investment ranks #161 out of 417 companies in the Insurance industry, placing it in the top 38.6%.
Is MGIC Investment's 5-Year Yield-on-Cost % too high?
MGIC Investment's current 5-Year Yield-on-Cost % of 5.06 is near median its 10-year median of 4.92. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 8.64. The Insurance industry median 5-Year Yield-on-Cost % is 3.98. MGIC Investment's value of 5.06 is 27.1% above this industry median. Based on the distribution chart, MGIC Investment ranks #161 out of 417 companies in the Insurance industry, which is above the industry midpoint. Overall, MGIC Investment has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGIC Investment's 5-Year Yield-on-Cost % compare to ESNT and ACT?
According to the Insurance industry distribution chart, MGIC Investment ranks #161 out of 417 companies for 5-Year Yield-on-Cost %. This puts MGIC Investment in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.98. MGIC Investment's value of 5.06 is 27.1% above this benchmark. Historically, MGIC Investment's own 5-Year Yield-on-Cost % has ranged from 1.00 to 8.64 over the past decade. While the company's 10-year median is 4.92 vs. the industry median of 3.98, MGIC Investment 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. MGIC Investment's current 5-Year Yield-on-Cost % of 5.06 is 27.1% 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 MGIC Investment 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. MGIC Investment's current 5-Year Yield-on-Cost % is 5.06, which is near median its own 10-year median of 4.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGIC Investment stock overvalued right now?
Based on GuruFocus' analysis, MGIC Investment (FRA:MGC) is currently considered Fairly Valued. The stock's GF Value™ is €24.19, compared to a current price of €25.20 — trading 4.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.06, which is near median its 10-year median of 4.92 and 27.1% above the Insurance industry median of 3.98. MGIC Investment's overall GF Score™ is 90/100 with 6 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 MGIC Investment (FRA:MGC), the current 5-Year Yield-on-Cost % is 5.06 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 MGIC Investment (FRA:MGC) Overvalued in 2026?
Based on GuruFocus' analysis, MGIC Investment stock appears to be overvalued.
The current stock price of €25.20 is trading 4.2% above its estimated GF Value™ of €24.19.
GuruFocus considers MGIC Investment to be Fairly Valued.
Key valuation signals for FRA:MGC:
5-Year Yield-on-Cost %: 5.06 (near median its 10-year median of 4.92)
GF Value™: €24.19 vs. price of €25.20 (4.2% above fair value)
Industry Position: 27.1% above the Insurance median (#161 of 417)
No single metric tells the full story. See the FRA:MGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGIC Investment Corp provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services. The insurance premiums that these customers pay for the protection account for close to the majority of the company's total revenue. Investment income accounts for the remaining revenue. The company sells its insurance products in all states of the United States and in Puerto Rico. Its greatest exposure is in California, Florida, Texas, Pennsylvania, Ohio, Illinois, Virginia, North Carolina, Georgia, and New York.
90GF Score
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