Yield
Financial term in the Investing category
Definition
The income return on an investment, expressed as a percentage. For bonds, it's the interest payment divided by the price. For stocks, it's the annual dividend divided by the stock price.
Related Terms
Dividend
A portion of a company's earnings distributed to shareholders, typically paid quarterly. Dividends provide a steady income stream in addition to potential stock price appreciation.
Bond
A fixed-income investment where an investor loans money to an entity (government or corporation) that borrows the funds for a defined period at a fixed interest rate.
Frequently Asked Questions
What is Yield?
The income return on an investment, expressed as a percentage. For bonds, it's the interest payment divided by the price. For stocks, it's the annual dividend divided by the stock price.
Why is Yield important in personal finance?
Yield is an important investing concept that helps individuals make better financial decisions. Understanding Yield can improve your financial planning and help you achieve your money goals.
How does Yield relate to Dividend?
Yield and Dividend are related financial concepts. A portion of a company's earnings distributed to shareholders, typically paid quarterly. Dividends provide a steady income stream in addition to potential stock price appreciation.
More Investing Terms
View all Investing termsGet Personalized Advice
Ask Warren AI how Yield applies to your specific financial situation.
Try Warren Free