Basis: Latest reported fiscal year. Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 1.53%.
YIELD ON COST (YOC)
1.53%
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(2016-08-05) | $37.85 | 1.90% |
| 5 years ago(2021-08-03) | $50.65 | 1.42% |
| 3 years ago(2023-08-04) | $32.73 | 2.20% |
| 1 year ago(2025-08-08) | $29.62 | 2.43% |
| Buying today(at $47.05) | $47.05 | 1.53% |
Projection: starting from today's 1.53% yield, assuming the dividend keeps compounding at its historical 32.0% rate. Boards set dividends each year, so actual figures will differ.
Today
1.53%
In 3 years
1.57%
In 5 years
1.60%
In 10 years
1.68%
Try your own purchase price, dividend and growth rate for Southwest Airlines Co. (LUV).
Starting Yield
1.53%
Ending YOC
98.04%
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 | 1.53% | $0.00 |
| Year 1 | $0.95 | +31.96% | 2.02% | $0.95 |
| Year 2 | $1.25 | +31.96% | 2.66% | $2.20 |
| Year 3 | $1.65 | +31.96% | 3.52% | $3.86 |
| Year 4 | $2.18 | +31.96% | 4.64% | $6.04 |
| Year 5 | $2.88 | +31.96% | 6.12% | $8.92 |
| Year 6 | $3.80 | +31.96% | 8.08% | $12.72 |
| Year 7 | $5.02 | +31.96% | 10.66% | $17.74 |
| Year 8 | $6.62 | +31.96% | 14.07% | $24.36 |
| Year 9 | $8.74 | +31.96% | 18.57% | $33.10 |
| Year 10 | $11.53 | +31.96% | 24.50% | $44.63 |
| Year 11 | $15.21 | +31.96% | 32.33% | $59.84 |
| Year 12 | $20.07 | +31.96% | 42.67% | $79.91 |
| Year 13 | $26.49 | +31.96% | 56.30% | $106.40 |
| Year 14 | $34.96 | +31.96% | 74.30% | $141.36 |
| Year 15 | $46.13 | +31.96% | 98.04% | $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
