Discover Financial Services (FRA:DC7) 5-Year Yield-on-Cost % : 3.84 (As of May. 02, 2024)

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What is Discover Financial Services 5-Year Yield-on-Cost %?

Discover Financial Services's yield on cost for the quarter that ended in Mar. 2024 was 3.84.

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

FRA:DC7' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.09 Med: 3.35 Max: 11.67
Current: 3.84

During the past 13 years, Discover Financial Services's highest Yield on Cost was 11.67. The lowest was 1.09. And the median was 3.35.

FRA:DC7's 5-Year Yield-on-Cost % is ranked worse than
54.3% of 221 companies
in the Credit Services industry
Industry Median: 4.27 vs FRA:DC7: 3.84

Competitive Comparison of Discover Financial Services's 5-Year Yield-on-Cost %

For the Credit Services subindustry, Discover Financial Services'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.

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

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

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

Discover Financial Services 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 Discover Financial Services is calculated as

Yield-on-Cost

Dividend Yield %

Dividend Growth Rate)^5

Discover Financial Services (FRA:DC7) 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.

Discover Financial Services 5-Year Yield-on-Cost % Related Terms

Thank you for viewing the detailed overview of Discover Financial Services's 5-Year Yield-on-Cost % provided by GuruFocus.com. Please click on the following links to see related term pages.

Discover Financial Services (FRA:DC7) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Discover Financial Services (FRA:DC7) » Definitions » 5-Year Yield-on-Cost %

Comparable Companies

Traded in Other Exchanges

DFS:USA

Address

2500 Lake Cook Road, Riverwoods, IL, USA, 60015

Website

https://www.discover.com

Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.

Discover Financial Services (FRA:DC7) Headlines

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