If a stock bought at $ 20 , splits 2:1 three times , then its yield on cost is below 50 % .
For example , if stock X was bought for $ 20 per share ( in ancient times ) , and it split 2:1 three times , and it is now trading for $ 50 , and it pays a dividend of $ 2 per year , then the yield on cost is 10 % .
Dividend yield