Monday, September 25, 2023

Yield and Cost Covered

On some of my stock spreadsheets I look at different things. For Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) I looked at current yield and cost coverage if you invested in this stock 5 to 30 years ago. Below is what I found out from my Great-West Lifeco spreadsheet. Whether it applies to other companies, I do not know.

On my spreadsheet for Great-West Lifeco Inc, I calculated the what the yield is at the end of 2022 after 5 to 30 years if someone had invested at the High, Median or Low price 5 to 30 years ago. The yields go lower at the 15 year mark because the stock price hit a peak in 2007. For this particular stock there is not a lot of difference. Look at year 20, after 20 years the difference in the yield after 20 years is from high price to low price is from 11.75% to 12.05%.

Year No. Yrs High Price Med Price Low Price
2017 5 5.19% 5.52% 5.88%
2012 10 7.84% 8.75% 9.89%
2007 15 5.25% 5.61% 6.03%
2002 20 11.75% 11.90% 12.05%
1997 25 20.10% 26.59% 39.28%
1992 30 103.64% 111.48% 120.62%

I also looked at the percentage of the purchase price would be paid after 5 to 30 years if you paid the high, median, or low price 5 to 30 years ago. It only seems to start to make a real difference after 25 years.

Year No. Yrs High Price Med Price Low Price
2017 5 23.12% 24.55% 26.18%
2012 10 61.36% 68.45% 77.40%
2007 15 57.44% 61.44% 66.03%
2002 20 152.91% 154.86% 156.86%
1997 25 278.74% 368.76% 544.64%
1992 30 1469.53% 1580.80% 1710.31%

If we look to the future, and assume that you recently bought this stock at the recent price of $40.67 and that dividends increases at the current 5 year rate per year of 5.95%, then in 5 years’ time, your dividend would be $2.78, your yield would be 6.83% on your original price ($40.67) and your dividend cost coverage of your original price would be 91.59%.

Div Pd Div Yield Years At IRR Div Cov
$2.78 6.83% 5 5.95% 91.59%
$3.71 9.12% 10 5.95% 78.26%
$4.95 12.17% 15 5.95% 326.44%

On my other blog I wrote yesterday about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. Next, I will write about BRP Inc (TSX-DOO, OTC-DOOO) ... learn more on Wednesday, September 27, 2023 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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