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LUVSouthwest Airlines Co.

Yield on Cost (YOC): 1.41%

LUV Yield on Cost (YOC) Metrics

YIELD ON COST (YOC)

1.41%

Yield on Cost for LUV

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 boughtPrice thenYield on cost today
10 years ago(2016-06-22)$40.261.79%
5 years ago(2021-06-18)$55.191.30%
3 years ago(2023-06-21)$34.352.10%
1 year ago(2025-06-25)$31.342.30%
Buying today(at $50.94)$50.941.41%

If you buy today and the dividend keeps growing

Projection: starting from today's 1.41% yield, assuming the dividend keeps compounding at its historical 32.0% rate. Boards set dividends each year, so actual figures will differ.

Today

1.41%

In 3 years

1.45%

In 5 years

1.48%

In 10 years

1.55%

Yield on Cost Calculator

Try your own purchase price, dividend and growth rate for Southwest Airlines Co. (LUV).

Calculator Controls
Customize parameters to project your custom Yield on Cost.
$50.94
$0.72
31.96%
15 Years

Starting Yield

1.41%

Ending YOC

90.55%

Year 15 Dividend

$46.13

Cum. Dividends Recd.

$187.49

Yield on Cost Progression Graph
Detailed Projections Ledger
Year-by-year table outlining compounding dividend returns on your purchase cost basis.
YearProjected Div. / ShareYoY Dividend HikeYield on Cost (YOC)Total Dividends Recd.
Initial$0.721.41%$0.00
Year 1$0.95+31.96%1.87%$0.95
Year 2$1.25+31.96%2.46%$2.20
Year 3$1.65+31.96%3.25%$3.86
Year 4$2.18+31.96%4.29%$6.04
Year 5$2.88+31.96%5.66%$8.92
Year 6$3.80+31.96%7.46%$12.72
Year 7$5.02+31.96%9.85%$17.74
Year 8$6.62+31.96%13.00%$24.36
Year 9$8.74+31.96%17.15%$33.10
Year 10$11.53+31.96%22.63%$44.63
Year 11$15.21+31.96%29.86%$59.84
Year 12$20.07+31.96%39.41%$79.91
Year 13$26.49+31.96%52.00%$106.40
Year 14$34.96+31.96%68.62%$141.36
Year 15$46.13+31.96%90.55%$187.49

Yield on Cost (YOC) Formula & Definition

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

Yield on Cost (YOC) FAQ

What is the yield on cost (YOC) for Southwest Airlines Co. (LUV)?
The yield on cost (YOC) for LUV stock is 1.41%.

About Southwest Airlines Co.

Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of Puerto Rico, along with 10 international countries close by. These international destinations include Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. To enhance the passenger journey, Southwest provides in-flight entertainment and internet access on its Wi-Fi-enabled planes. The airline also runs the Rapid Rewards loyalty program, enabling members to accumulate points proportional to the money spent on Southwest's base fares. For customer convenience in travel planning, the company offers a range of digital tools, including its official websites and mobile applications, as well as SWABIZ, a dedicated online booking platform for business clients. Additional services available include EarlyBird Check-In, preferred boarding options, and transportation for pets and unaccompanied minors. The company was founded in 1967 and its corporate headquarters are situated in Dallas, Texas.

Dallas, TX
71,506 employees
Industrials / Airlines, Airports & Air Services
Sector
Industrials
Industry
Airlines, Airports & Air Services
CEO
Robert E. Jordan