Basis: Latest reported fiscal year. Source: stored company filings and market data; unavailable inputs remain N/A.
The yield on cost (YOC) is 1.09%.
YIELD ON COST (YOC)
1.09%
AJG now pays $2.70 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(2016-07-20) | $48.78 | 5.54% |
| 5 years ago(2021-07-28) | $137.51 | 1.96% |
| 3 years ago(2023-07-19) | $212.72 | 1.27% |
| 1 year ago(2025-07-23) | $310.79 | 0.87% |
| Buying today(at $247.77) | $247.77 | 1.09% |
Projection: starting from today's 1.09% yield, assuming the dividend keeps compounding at its historical 7.6% rate. Boards set dividends each year, so actual figures will differ.
Today
1.09%
In 3 years
1.48%
In 5 years
1.81%
In 10 years
2.99%
Try your own purchase price, dividend and growth rate for Arthur J. Gallagher & Co. (AJG).
Starting Yield
1.09%
Ending YOC
3.28%
Year 15 Dividend
$8.14
Cum. Dividends Recd.
$76.67
| Year | Projected Div. / Share | YoY Dividend Hike | Yield on Cost (YOC) | Total Dividends Recd. |
|---|---|---|---|---|
| Initial | $2.70 | N/A | 1.09% | $0.00 |
| Year 1 | $2.91 | +7.63% | 1.17% | $2.91 |
| Year 2 | $3.13 | +7.63% | 1.26% | $6.03 |
| Year 3 | $3.37 | +7.63% | 1.36% | $9.40 |
| Year 4 | $3.62 | +7.63% | 1.46% | $13.02 |
| Year 5 | $3.90 | +7.63% | 1.57% | $16.92 |
| Year 6 | $4.20 | +7.63% | 1.69% | $21.12 |
| Year 7 | $4.52 | +7.63% | 1.82% | $25.64 |
| Year 8 | $4.86 | +7.63% | 1.96% | $30.50 |
| Year 9 | $5.23 | +7.63% | 2.11% | $35.73 |
| Year 10 | $5.63 | +7.63% | 2.27% | $41.37 |
| Year 11 | $6.06 | +7.63% | 2.45% | $47.43 |
| Year 12 | $6.52 | +7.63% | 2.63% | $53.95 |
| Year 13 | $7.02 | +7.63% | 2.83% | $60.98 |
| Year 14 | $7.56 | +7.63% | 3.05% | $68.53 |
| Year 15 | $8.14 | +7.63% | 3.28% | $76.67 |
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