Yield on Cost (YoC): The "Secret" Metric of the Rich

There is a number that long-term investors love more than anything else, and most broker apps don't even show it to you. It's called Yield on Cost (YoC).

What is YoC?

Imagine you bought a stock years ago for RM5.00, and it paid a 25 sen dividend. Your yield was 5%. Today, that stock is worth RM10.00 and pays 50 sen. A new buyer today gets a 5% yield. But since you bought it at RM5.00, your personal yield is now 10%.

Why YoC is the "Motivation Metric"

• It rewards your Patience.
• It proves that "boring" stocks like Maybank become money-printing machines if you just hold them.
• It stops you from selling during a market dip because you realize how high your "actual" yield is compared to your original cost.

The Perspective

Seeing your YoC tick upward year after year is like watching a tree you planted finally start giving massive amounts of fruit. It's a metric we track heavily in DivTrackr because it's the only number that truly shows the power of long-term compounding.