Yield Advantage


Yield Advantage
The relationship between convertible securities and the dividend yield of the common stock of the same issuing corporation. The yield advantage is the additional amount of return an investor can expect to earn if a convertible security is purchased instead of the common stock.

The yield advantage is calculated by subtracting the dividend yield of common stock from the rate of return on a convertible security. Determining this calculation helps investors decide if it is advantageous to retain the convertible security or exchange it for common stock.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • advantage — /ad van tij, vahn /, n., v., advantaged, advantaging. n. 1. any state, circumstance, opportunity, or means specially favorable to success, interest, or any desired end: the advantage of a good education. 2. benefit; gain; profit: It will be to… …   Universalium

  • yield — [[t]yild[/t]] v. t. 1) agr. to give forth or produce by a natural process or in return for cultivation: to yield 40 bushels to the acre[/ex] 2) bus to produce or furnish (profit) 3) to give up, as to superior power or authority: yielded the fort… …   From formal English to slang

  • yield — I. verb Etymology: Middle English, from Old English gieldan; akin to Old High German geltan to pay Date: before 12th century transitive verb 1. archaic recompense, reward 2. to give or render as fitting, rightfully owed, or required 3. to give up …   New Collegiate Dictionary

  • advantage — /ədˈvæntɪdʒ / (say uhd vantij), / ˈvan / (say vahn ) noun 1. any state, circumstance, opportunity, or means specially favourable to success, interest, or any desired end: the advantage of a good education. 2. benefit; gain; profit: it is to her… …   Australian English dictionary

  • advantage — ad•van•tage [[t]ædˈvæn tɪdʒ, ˈvɑn [/t]] n. v. taged, taging 1) any circumstance, opportunity, or means specially favorable to success or a desired end: the advantages of a good education[/ex] 2) benefit; gain; profit: It will be to your advantage …   From formal English to slang

  • advantage — Synonyms and related words: accommodation, account, advance, advancement, advantageously, advantageousness, advisability, allowance, amenity, answer, appliance, applicability, appropriateness, appurtenance, ascendancy, asset, avail, be handy, be… …   Moby Thesaurus


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