The Hanover Insurance GroupTHG -2.37%80 5-Year Yield-on-Cost % is 2.45 as of Jul. 08, 2026, which is 15% below its 10-year median of 2.89. GuruFocus rates THG with a GF Score™ of 80/100 and a GF Value™ of $201.92 (Fairly Valued). The stock has 7 warning signs investors should review. Among 423 Insurance companies, The Hanover Insurance Group ranks worse than 73.29% on this metric.
The historical rank and industry rank for The Hanover Insurance Group's 5-Year Yield-on-Cost % or its related term are showing as below:
THG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.24 Med: 2.89 Max: 4.18
Current: 2.45
During the past 13 years, The Hanover Insurance Group's highest Yield on Cost was 4.18. The lowest was 2.24. And the median was 2.89.
THG's 5-Year Yield-on-Cost % is ranked worse than 73.29% of 423
companies
in the Insurance industry
Industry Median: 3.92
vs THG: 2.45
The Hanover Insurance Group (NYSE:THG) 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.
The Hanover Insurance Group 5-Year Yield-on-Cost % Related Terms
THG vs KNSL, MCY, SIGI: 5-Year Yield-on-Cost % Comparison
For the Insurance - Property & Casualty subindustry, The Hanover 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.
The Hanover Insurance Group 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's 5-Year Yield-on-Cost % falls into.
The Hanover 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.
The Hanover Insurance Group (THG) has a 5-Year Yield-on-Cost % of 2.45 as of Jul. 08, 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 The Hanover Insurance Group and its competitors. This is 15% below median its historical median of 2.89. Over the past decade, The Hanover Insurance Group's 5-Year Yield-on-Cost % has ranged from 2.24 to 4.18. According to the industry distribution chart, The Hanover Insurance Group ranks #310 out of 423 companies in the Insurance industry, placing it in the top 73.3%.
Is The Hanover Insurance Group's 5-Year Yield-on-Cost % too high?
The Hanover Insurance Group's current 5-Year Yield-on-Cost % of 2.45 is 15% below median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 2.24 to a high of 4.18. The Insurance industry median 5-Year Yield-on-Cost % is 3.92. The Hanover Insurance Group's value of 2.45 is 37.5% below this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #310 out of 423 companies in the Insurance industry, which is below the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's 5-Year Yield-on-Cost % compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #310 out of 423 companies for 5-Year Yield-on-Cost %. This places The Hanover Insurance Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.92. The Hanover Insurance Group's value of 2.45 is 37.5% below this benchmark. Historically, The Hanover Insurance Group's own 5-Year Yield-on-Cost % has ranged from 2.24 to 4.18 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 3.92, The Hanover Insurance Group has consistently been below 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 3.92, based on 423 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. The Hanover Insurance Group's current 5-Year Yield-on-Cost % of 2.45 is 37.5% 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 The Hanover Insurance Group and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current 5-Year Yield-on-Cost % is 2.45, which is 15% below median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hanover Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, The Hanover Insurance Group (THG) is currently considered Fairly Valued. The stock's GF Value™ is $201.92, compared to a current price of $213.29 — trading 5.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.45, which is 15% below median its 10-year median of 2.89 and 37.5% below the Insurance industry median of 3.92. The Hanover Insurance Group's overall GF Score™ is 80/100 with 7 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 The Hanover Insurance Group (THG), the current 5-Year Yield-on-Cost % is 2.45 as of Jul. 08, 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 The Hanover Insurance Group (THG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hanover Insurance Group stock appears to be overvalued.
The current stock price of $213.29 is trading 5.6% above its estimated GF Value™ of $201.92.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
5-Year Yield-on-Cost %: 2.45 (15% below median its 10-year median of 2.89)
GF Value™: $201.92 vs. price of $213.29 (5.6% above fair value)
Industry Position: 37.5% below the Insurance median (#310 of 423)
No single metric tells the full story. See the THG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business through Hanover Insurance, Citizens and other THG subsidiaries. The company conducts business operations through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. The company operates an investment portfolio that is exposed to fixed-income securities.
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