Market Cap : 1.83 B | Enterprise Value : 22.06 B | PE Ratio : | PB Ratio : 1.23 |
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Plains GP Holdings LP's yield on cost for the quarter that ended in Dec. 2020 was 2.84.
During the past 11 years, Plains GP Holdings LP's highest Yield on Cost was 9.42. The lowest was 0.16. And the median was 2.66.
* The bar in red indicates where Plains GP Holdings LP'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 Plains GP Holdings LP is calculated as
Yield-on-Cost | = | Dividend Yield % | * | (1 | + | Dividend Growth Rate)^5 |
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.
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