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Hess Midstream LPHESM +1.63%67 5-Year Yield-on-Cost % is 12.78 as of Jul. 15, 2026, which is 6% above its 10-year median of 12.06. GuruFocus rates HESM with a GF Score™ of 67/100 and a GF Value™ of $24.39 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 504 Oil & Gas companies, Hess Midstream LP ranks better than 83.13% on this metric.
Hess Midstream LP's yield on cost for the quarter that ended in Mar. 2026 was 12.78.
The historical rank and industry rank for Hess Midstream LP's 5-Year Yield-on-Cost % or its related term are showing as below:
HESM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.06 Med: 12.06 Max: 30.95
Current: 12.78
During the past 13 years, Hess Midstream LP's highest Yield on Cost was 30.95. The lowest was 2.06. And the median was 12.06.
HESM's 5-Year Yield-on-Cost % is ranked better than 83.13% of 504
companies
in the Oil & Gas industry
Industry Median: 5.135
vs HESM: 12.78
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.
Hess Midstream LP 5-Year Yield-on-Cost % Related Terms
HESM vs PAGP, GLNG, INSW: 5-Year Yield-on-Cost % Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP'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.
Hess Midstream LP 5-Year Yield-on-Cost % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP'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.
Hess Midstream LP (HESM) has a 5-Year Yield-on-Cost % of 12.78 as of Jul. 15, 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 Hess Midstream LP and its competitors. This is near median its historical median of 12.06. Over the past decade, Hess Midstream LP's 5-Year Yield-on-Cost % has ranged from 2.06 to 30.95. According to the industry distribution chart, Hess Midstream LP ranks #85 out of 504 companies in the Oil & Gas industry, placing it in the top 16.9%.
Is Hess Midstream LP's 5-Year Yield-on-Cost % too high?
Hess Midstream LP's current 5-Year Yield-on-Cost % of 12.78 is near median its 10-year median of 12.06. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 30.95. The Oil & Gas industry median 5-Year Yield-on-Cost % is 5.14. Hess Midstream LP's value of 12.78 is 148.9% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #85 out of 504 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Hess Midstream LP has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's 5-Year Yield-on-Cost % compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #85 out of 504 companies for 5-Year Yield-on-Cost %. This places Hess Midstream LP in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 5.14. Hess Midstream LP's value of 12.78 is 148.9% above this benchmark. Historically, Hess Midstream LP's own 5-Year Yield-on-Cost % has ranged from 2.06 to 30.95 over the past decade. While the company's 10-year median is 12.06 vs. the industry median of 5.14, Hess Midstream LP 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 Oil & Gas company?
The median 5-Year Yield-on-Cost % among Oil & Gas companies is 5.14, based on 504 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. Hess Midstream LP's current 5-Year Yield-on-Cost % of 12.78 is 148.9% 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 Hess Midstream LP and its competitors. For the Oil & Gas industry, the median 5-Year Yield-on-Cost % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current 5-Year Yield-on-Cost % is 12.78, which is near median its own 10-year median of 12.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hess Midstream LP stock overvalued right now?
Based on GuruFocus' analysis, Hess Midstream LP (HESM) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.39, compared to a current price of $39.85 — trading 63.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 12.78, which is near median its 10-year median of 12.06 and 148.9% above the Oil & Gas industry median of 5.14. Hess Midstream LP's overall GF Score™ is 67/100 with 9 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 Hess Midstream LP (HESM), the current 5-Year Yield-on-Cost % is 12.78 as of Jul. 15, 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 Hess Midstream LP (HESM) Overvalued in 2026?
Based on GuruFocus' analysis, Hess Midstream LP stock appears to be overvalued.
The current stock price of $39.85 is trading 63.4% above its estimated GF Value™ of $24.39.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
5-Year Yield-on-Cost %: 12.78 (near median its 10-year median of 12.06)
GF Value™: $24.39 vs. price of $39.85 (63.4% above fair value)
Industry Position: 148.9% above the Oil & Gas median (#85 of 504)
No single metric tells the full story. See the HESM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hess Midstream LP is a fee-based, growth-oriented limited partnership that owns, operates, develops, and acquires a portfolio of midstream assets. The company provides fee-based services to Chevron Corporation and generates all of its revenue by charging fees for gathering, compressing, and processing natural gas, fractionating NGLs, gathering, terminaling, loading, and transporting crude oil and NGLs, storing and terminaling propane, and gathering and disposing of produced water. It operates through gathering, processing, and storage, and terminaling and export segments, with the gathering segment contributing the maximum share of revenue and comprising natural gas gathering and compression, as well as crude oil gathering and produced water gathering and disposal assets.
67GF Score
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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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