Yield

What does it mean?
The rate of income generated from a stock in the form of dividends, or the effective rate of interest paid on a bond, calculated by the coupon rate divided by the bond's market price. Furthermore, for any investment, yield is the annual rate of return expressed as a percentage.


In Other Words...
Investors can use yield to measure the performance of their investment and compare it to the yield on other investments or securities.

In some situations, yield may not be a true return measure because it doesn't account for capital gains or losses.



Related Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Related Terms
Dividend Yield | Yield Curve | Yield Elbow | Yield Equivalence | Yield To Call | Yield To Maturity | Yield To Worst

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