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Direct Line Insurance Group (LSE:DLG) 5-Year Yield-on-Cost % : 2.13 (As of May. 01, 2024)


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What is Direct Line Insurance Group 5-Year Yield-on-Cost %?

Direct Line Insurance Group's yield on cost for the quarter that ended in Dec. 2023 was 2.13.


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

LSE:DLG' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.13   Med: 4.61   Max: 16.7
Current: 2.13


During the past 13 years, Direct Line Insurance Group's highest Yield on Cost was 16.70. The lowest was 2.13. And the median was 4.61.


LSE:DLG's 5-Year Yield-on-Cost % is ranked worse than
74.19% of 403 companies
in the Insurance industry
Industry Median: 3.89 vs LSE:DLG: 2.13

Competitive Comparison of Direct Line Insurance Group's 5-Year Yield-on-Cost %

For the Insurance - Property & Casualty subindustry, Direct Line Insurance 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.


Direct Line Insurance Group's 5-Year Yield-on-Cost % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Direct Line Insurance Group's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Direct Line Insurance Group's 5-Year Yield-on-Cost % falls into.



Direct Line Insurance Group 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 Direct Line Insurance Group is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Direct Line Insurance Group  (LSE:DLG) 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.


Direct Line Insurance Group 5-Year Yield-on-Cost % Related Terms

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Direct Line Insurance Group (LSE:DLG) Business Description

Address
Westmoreland Road, Churchill Court, Bromley, Kent, GBR, BR1 1DP
While Direct Line is one of the more focused personal lines insurers that we cover in Europe, it is still quite diversified. The business sells insurance under four divisions and those are personal lines motor, personal lines home, rescue and other personal lines, and commercial. Rescue and other personal lines include rescue, travel and pet insurance, and commercial insurance is sold to small and medium sized enterprises. Direct Line only sells insurance in United Kingdom. Direct Lines personal motor insurance division typically accounts for around 50% of total group gross written premium and the personal home insurance unit typically sells around 20%. Rescue and other personal lines account for around 10% and commercial insurance accounts for around 20%.

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