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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.
DLocal 5-Year Yield-on-Cost % Related Terms
MEX:DLON vs BOX, NTSK, FOUR: 5-Year Yield-on-Cost % Comparison
For the Software - Infrastructure subindustry, DLocal'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.
DLocal 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, DLocal's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where DLocal'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 DLocal is calculated as
DLocal (MEX:DLON) has a 5-Year Yield-on-Cost % of 1.29 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 DLocal and its competitors. According to the industry distribution chart, DLocal ranks #730 out of 1016 companies in the Software industry, placing it in the top 71.9%.
Is DLocal's 5-Year Yield-on-Cost % too high?
DLocal's current 5-Year Yield-on-Cost % is 1.29. The Software industry median 5-Year Yield-on-Cost % is 3.10. DLocal's value of 1.29 is 58.4% below this industry median. Based on the distribution chart, DLocal ranks #730 out of 1016 companies in the Software industry, which is below the industry midpoint. Overall, DLocal has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does DLocal's 5-Year Yield-on-Cost % compare to BOX and NTSK?
According to the Software industry distribution chart, DLocal ranks #730 out of 1016 companies for 5-Year Yield-on-Cost %. This places DLocal in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.10. DLocal's value of 1.29 is 58.4% below this benchmark. 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 a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.10, based on 1,016 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. DLocal's current 5-Year Yield-on-Cost % of 1.29 is 58.4% below 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 DLocal and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DLocal's current 5-Year Yield-on-Cost % is 1.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DLocal stock overvalued right now?
Based on GuruFocus' analysis, DLocal (MEX:DLON) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN357.52, compared to a current price of MXN257.00 — trading 28.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.29 and 58.4% below the Software industry median of 3.10. DLocal's overall GF Score™ is 76/100 with 4 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 DLocal (MEX:DLON), the current 5-Year Yield-on-Cost % is 1.29 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 DLocal (MEX:DLON) Overvalued in 2026?
Based on GuruFocus' analysis, DLocal stock appears to be undervalued.
The current stock price of MXN257.00 is trading 28.1% below its estimated GF Value™ of MXN357.52.
GuruFocus considers DLocal to be Modestly Undervalued.
Key valuation signals for MEX:DLON:
5-Year Yield-on-Cost %: 1.29
GF Value™: MXN357.52 vs. price of MXN257.00 (28.1% below fair value)
Industry Position: 58.4% below the Software median (#730 of 1016)
No single metric tells the full story. See the MEX:DLON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DLocal Ltd is focused on making the complex simple, redefining the online payment experience in emerging markets. Through its technology platform, One dLocal, the company enables world-wide enterprise merchants to get paid (pay-in) and to make payments (pay-out) online in a safe and efficient manner. The company earns revenue from fees charged to merchants in connection with payment processing services for cross-border and local payment transactions. The company operates in a single operating segment, which is payment processing. The company's geographical segments include Latin America and Non-Latin America, with a majority of its revenue being generated from Brazil in the Latin America region.
76GF 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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