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REC (BOM:532955) 5-Year Yield-on-Cost % : 4.92 (As of May. 14, 2024)


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What is REC 5-Year Yield-on-Cost %?

REC's yield on cost for the quarter that ended in Mar. 2024 was 4.92.


The historical rank and industry rank for REC's 5-Year Yield-on-Cost % or its related term are showing as below:

BOM:532955' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.57   Med: 15.16   Max: 25.17
Current: 4.92


During the past 13 years, REC's highest Yield on Cost was 25.17. The lowest was 4.57. And the median was 15.16.


BOM:532955's 5-Year Yield-on-Cost % is ranked better than
55.92% of 211 companies
in the Credit Services industry
Industry Median: 4.34 vs BOM:532955: 4.92

Competitive Comparison of REC's 5-Year Yield-on-Cost %

For the Credit Services subindustry, REC's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


REC's 5-Year Yield-on-Cost % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, REC's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where REC's 5-Year Yield-on-Cost % falls into.



REC 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of REC is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

REC  (BOM:532955) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


REC 5-Year Yield-on-Cost % Related Terms

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REC (BOM:532955) Business Description

Traded in Other Exchanges
Address
Plot No. I-4, Sector 29, Gurugram, HR, IND, 122001
REC Ltd is a nonbanking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. The majority of its revenue derives from long-term financing.

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