10-02-2013, 09:37 AM
(10-02-2013, 06:51 AM)hendi_alex Wrote: 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.Common sense to me is what Income will my investments give me. Currently I'm receiving over $50,000/yr. of income and that amount is increasing each quarter (actually I do feel pretty good).
(10-02-2013, 06:51 AM)hendi_alex Wrote: 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.Certainly if I wanted to add to my positions current yield and growth potential are important. Would I dump a holding that is returning 9% on my YOC (and its current yield is 3.5%) because a new stock looks good (with say 4% or 4.5%) and may have good growth? I wouldn't, because the stocks I hold have a history that's giving me what I want...Growing Income.