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Webster FinancialWBS -0.33%77 5-Year Yield-on-Cost % is 2.10 as of Jul. 18, 2026, which is 27% below its 10-year median of 2.87. GuruFocus rates WBS with a GF Score™ of 77/100 and a GF Value™ of $58.13 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,255 Banks companies, Webster Financial ranks worse than 80.72% on this metric.
Webster Financial's yield on cost for the quarter that ended in Mar. 2026 was 2.10.
The historical rank and industry rank for Webster Financial's 5-Year Yield-on-Cost % or its related term are showing as below:
WBS'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.54 Med: 2.87 Max: 7.57
Current: 2.1
During the past 13 years, Webster Financial's highest Yield on Cost was 7.57. The lowest was 1.54. And the median was 2.87.
WBS's 5-Year Yield-on-Cost % is ranked worse than 80.72% of 1255
companies
in the Banks industry
Industry Median: 3.85
vs WBS: 2.10
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.
Webster Financial 5-Year Yield-on-Cost % Related Terms
WBS vs FHN, UMBF, WTFC: 5-Year Yield-on-Cost % Comparison
For the Banks - Regional subindustry, Webster Financial'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.
Webster Financial 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Webster Financial's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Webster Financial'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.
Webster Financial (WBS) has a 5-Year Yield-on-Cost % of 2.10 as of Jul. 18, 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 Webster Financial and its competitors. This is 27% below median its historical median of 2.87. Over the past decade, Webster Financial's 5-Year Yield-on-Cost % has ranged from 1.54 to 7.57. According to the industry distribution chart, Webster Financial ranks #1013 out of 1255 companies in the Banks industry, placing it in the top 80.7%.
Is Webster Financial's 5-Year Yield-on-Cost % too high?
Webster Financial's current 5-Year Yield-on-Cost % of 2.10 is 27% below median its 10-year median of 2.87. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 7.57. The Banks industry median 5-Year Yield-on-Cost % is 3.85. Webster Financial's value of 2.10 is 45.5% below this industry median. Based on the distribution chart, Webster Financial ranks #1013 out of 1255 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Webster Financial has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Webster Financial's 5-Year Yield-on-Cost % compare to FHN and UMBF?
According to the Banks industry distribution chart, Webster Financial ranks #1013 out of 1255 companies for 5-Year Yield-on-Cost %. This places Webster Financial in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.85. Webster Financial's value of 2.10 is 45.5% below this benchmark. Historically, Webster Financial's own 5-Year Yield-on-Cost % has ranged from 1.54 to 7.57 over the past decade. While the company's 10-year median is 2.87 vs. the industry median of 3.85, Webster Financial 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 a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.85, based on 1,255 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. Webster Financial's current 5-Year Yield-on-Cost % of 2.10 is 45.5% 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 Webster Financial and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webster Financial's current 5-Year Yield-on-Cost % is 2.10, which is 27% below median its own 10-year median of 2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webster Financial stock overvalued right now?
Based on GuruFocus' analysis, Webster Financial (WBS) is currently considered Significantly Overvalued. The stock's GF Value™ is $58.13, compared to a current price of $76.01 — trading 30.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.10, which is 27% below median its 10-year median of 2.87 and 45.5% below the Banks industry median of 3.85. Webster Financial's overall GF Score™ is 77/100 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 Webster Financial (WBS), the current 5-Year Yield-on-Cost % is 2.10 as of Jul. 18, 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 Webster Financial (WBS) Overvalued in 2026?
Based on GuruFocus' analysis, Webster Financial stock appears to be overvalued.
The current stock price of $76.01 is trading 30.8% above its estimated GF Value™ of $58.13.
GuruFocus considers Webster Financial to be Significantly Overvalued.
Key valuation signals for WBS:
5-Year Yield-on-Cost %: 2.10 (27% below median its 10-year median of 2.87)
GF Value™: $58.13 vs. price of $76.01 (30.8% above fair value)
Industry Position: 45.5% below the Banks median (#1013 of 1255)
No single metric tells the full story. See the WBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Webster Financial Corp is a full-service provider of financial services, offering commercial and consumer banking, mortgages, and investment advisory along with trust and wealth management services in Connecticut, New York, Rhode Island, Massachusetts, and Pennsylvania. The company's segment includes Commercial Banking, HSA Bank, and Consumer Banking. It generates maximum revenue from the Commercial Banking segment.
77GF Score
Get the complete analysis for WBS
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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