Yield

The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

This seemingly simple term, without a qualifier, can be rather confusing to investors.

For example, there are two stock dividend yields. If you buy a stock for $30 (cost basis) and its current price and annual dividend is $33 and $1, respectively, the "cost yield" will be 3.3% ($1/$30) and the "current yield" will be 3% ($1/$33).

Bonds have four yields: coupon (the bond interest rate fixed at issuance), current (the bond interest rate as a percentage of the current price of the bond), and yield to maturity (an estimate of what an investor will receive if the bond is held to its maturity date). Non-taxable municipal bonds will have a tax-equivalent (TE) yield determined by the investor's tax bracket.

Mutual fund yields are an annual percentage measure of income (dividends and interest) earned by the fund's portfolio, net of the fund's expenses. In addition, the "SEC yield" is an indicator of the percentage yield on a fund based on a 30-day period.


Investment dictionary. . 2012.

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  • Yield — may mean:* Crop yield, a measure of the output per unit area of land under cultivation * Maximum sustainable yield, the largest long term fishery catch that can be safely taken * Rolled throughput yield, a statistical tool in Six Sigma * Yield… …   Wikipedia

  • Yield — Yield, v. t. [imp. & p. p. {Yielded}; obs. p. p. {Yold}; p. pr. & vb. n. {Yielding}.] [OE. yelden, [yogh]elden, [yogh]ilden, AS. gieldan, gildan, to pay, give, restore, make an offering; akin to OFries. jelda, OS. geldan, D. gelden to cost, to be …   The Collaborative International Dictionary of English

  • yield — 1 / yēld/ vt: to produce as return from an expenditure or investment: furnish as profit or interest an account that yield s 6 percent vi 1: to give place or precedence (as to one having a superior right or claim) 2: to relinquish the floor of a… …   Law dictionary

  • Yield — Álbum de Pearl Jam Publicación 3 de febrero de 1998 Grabación de Febrero a Septiembre de 1997 en los estudios Litho y estudios Bad Animals Género(s) Rock Alternativo, Grung …   Wikipedia Español

  • yield´er — yield «yeeld», verb, noun. –v.t. 1. a) to produce; bear: »This land yields good crops. Mines yield ores. SYNONYM(S): furnish, supply. b) to give in return; bring in: »an investment which yielded a large profit. c) to fill a need; furnish; afford …   Useful english dictionary

  • Yield — bezeichnet: Ausbeute (Halbleitertechnik) Yield, der englische Begriff für Rendite All Risk Yield (Nettoanfangsrendite bei Immobilieninvestitionen) Yield Spread Analyse, der englische Begriff für die Portfolioanalyse Yield Compression, auch… …   Deutsch Wikipedia

  • yield — [yēld] vt. [ME yelden < OE gieldan, to pay, give, akin to Ger gelten, to be worth < IE base * ghel tō, (I) give, pay] 1. to produce; specif., a) to give or furnish as a natural process or as the result of cultivation [an orchard that… …   English World dictionary

  • yield — vb 1 produce, turn out, *bear Analogous words: *generate, engender, breed, propagate: create, *invent: form, shape, *make, fabricate, fashion 2 *relinqui …   New Dictionary of Synonyms

  • Yield — Yield, v. i. 1. To give up the contest; to submit; to surrender; to succumb. [1913 Webster] He saw the fainting Grecians yield. Dryden. [1913 Webster] 2. To comply with; to assent; as, I yielded to his request. [1913 Webster] 3. To give way; to… …   The Collaborative International Dictionary of English

  • yield — [n] production of labor crop, earnings, harvest, income, output, outturn, produce, profit, return, revenue, takings, turnout; concept 260 yield [v1] produce accrue, admit, afford, allow, beam, bear, blossom, bring forth, bring in, discharge, earn …   New thesaurus

  • Yield — Yield, n. Amount yielded; product; applied especially to products resulting from growth or cultivation. A goodly yield of fruit doth bring. Bacon. [1913 Webster] …   The Collaborative International Dictionary of English

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