Calculating investment returns: Actuarially speaking, 6% is a good rule of thumb.

[hendi_alex]

From a common sense point of view and from the view of everything that I've read and been told, YOC is a meaningless, feel good metric. All that really matters is current yield, current growth and how that compares to current alternatives. I never calculate YOC, and only look at the stock's current metrics. Would I buy the stock now at its current yield and growth rate? If the answer is no, then it is time to be looking around to see if there is a stock that would generate an answer of yes.