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Shriram Finance (NSE:SHRIRAMFIN) 5-Year Yield-on-Cost % : 7.75 (As of May. 25, 2024)


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What is Shriram Finance 5-Year Yield-on-Cost %?

Shriram Finance's yield on cost for the quarter that ended in Mar. 2024 was 7.75.


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

NSE:SHRIRAMFIN' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.16   Med: 3.5   Max: 9.13
Current: 7.75


During the past 13 years, Shriram Finance's highest Yield on Cost was 9.13. The lowest was 1.16. And the median was 3.50.


NSE:SHRIRAMFIN's 5-Year Yield-on-Cost % is ranked better than
74.88% of 207 companies
in the Credit Services industry
Industry Median: 4.21 vs NSE:SHRIRAMFIN: 7.75

Competitive Comparison of Shriram Finance's 5-Year Yield-on-Cost %

For the Credit Services subindustry, Shriram Finance'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.


Shriram Finance's 5-Year Yield-on-Cost % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Shriram Finance's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Shriram Finance's 5-Year Yield-on-Cost % falls into.



Shriram Finance 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 Shriram Finance is calculated as

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

Shriram Finance  (NSE:SHRIRAMFIN) 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.


Shriram Finance 5-Year Yield-on-Cost % Related Terms

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Shriram Finance (NSE:SHRIRAMFIN) Business Description

Traded in Other Exchanges
Address
Wockhardt Towers, West Wing, Level-3, C-2, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051
Shriram Finance Ltd is an Indian non-banking finance company. It is engaged in the financing of pre-owned commercial vehicles, equipment, and other loans. The company focuses on loan origination, valuation, and collection for pre-owned and new commercial and passenger vehicles, tractors, 3 wheeler, multi-utility vehicles, and also provides ancillary services such as finance for working capital, engine replacement, bill discounting, credit cards, and tire-loans as holistic financing support. The company's revenue consists of interest income on loans provides. Geographically, it derives maximum revenue from India.

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