Yield-on-cost is the metric dividend growth investors actually track
A stock bought at $50 paying $2/share is a 4% yield today. If the dividend grows to $5/share, your yield-on-cost is 10% — even if the market price is now $200.
DRIP quietly does the heavy lifting. Reinvested dividends have contributed roughly 40% of the S&P 500's total return since 1930.
Watch payout ratio (dividend / earnings). Over 80% is a red flag — the company can't sustain growth. Under 60% is comfortable.