Income, yield, and yield on cost for dividend-paying stocks.
Current yield = annual dividend ÷ current price. Yield on cost (YOC) = annual dividend ÷ your original cost basis. Long-term dividend investors often have YOC of 8–15% on stocks with modest current yields — because the dividend has grown significantly since their original purchase.
When evaluating dividend stocks, look at dividend growth rate over 5–10 years, not just current yield. High current yields often signal that the dividend may be at risk of being cut.