Most casual income investors focus on current yield, which is important. However, if your objective is to build a portfolio of securities with increasing income, then Yield on Cost is an excellent metric to measure your progress.

Dividend stocks. When you hear those two words what do you think of? Many people think of widows and orphans, along with their stereotypical investment in utility stocks. While others may think of maximizing income by finding the highest yielding stocks available like Real Estate Investment Trusts.