Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 1.83%.
YIELD ON COST (YOC)
1.83%
LUV now pays $0.72 per share a year. Measured against the price it actually traded at back then, a long-term holder is earning:
| If you bought | Price then | Yield on cost today |
|---|---|---|
| 10 years ago(2016-09-06) | $36.95 | 1.95% |
| 5 years ago(2021-09-14) | $48.03 | 1.50% |
| 3 years ago(2023-09-15) | $29.69 | 2.43% |
| 1 year ago(2025-09-09) | $30.99 | 2.32% |
| Buying today(at $41.20) | $41.20 | 1.83% |
Projection: starting from today's 1.83% yield, assuming the dividend keeps compounding at 0.5% a year — the recent growth rate of its annual payout. Boards set dividends each year, so actual figures will differ.
Today
1.83%
In 3 years
1.86%
In 5 years
1.88%
In 10 years
1.92%
Try your own purchase price, dividend and growth rate for Southwest Airlines Co. (LUV).
Starting Yield
1.75%
Ending YOC
111.95%
Year 15 Dividend
$46.13
Cum. Dividends Recd.
$187.49
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $0.72 | N/A | 1.75% | $0.00 |
| Year 1 | $0.95 | +31.96% | 2.31% | $0.95 |
| Year 2 | $1.25 | +31.96% | 3.04% | $2.20 |
| Year 3 | $1.65 | +31.96% | 4.02% | $3.86 |
| Year 4 | $2.18 | +31.96% | 5.30% | $6.04 |
| Year 5 | $2.88 | +31.96% | 6.99% | $8.92 |
| Year 6 | $3.80 | +31.96% | 9.23% | $12.72 |
| Year 7 | $5.02 | +31.96% | 12.18% | $17.74 |
| Year 8 | $6.62 | +31.96% | 16.07% | $24.36 |
| Year 9 | $8.74 | +31.96% | 21.20% | $33.10 |
| Year 10 | $11.53 | +31.96% | 27.98% | $44.63 |
| Year 11 | $15.21 | +31.96% | 36.92% | $59.84 |
| Year 12 | $20.07 | +31.96% | 48.72% | $79.91 |
| Year 13 | $26.49 | +31.96% | 64.29% | $106.40 |
| Year 14 | $34.96 | +31.96% | 84.83% | $141.36 |
| Year 15 | $46.13 | +31.96% | 111.95% | $187.49 |
Yield on cost is the dividend yield measured against your original purchase price, not today's price. As a company raises its dividend, the yield on what you actually paid keeps rising even when the market yield holds steady.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
