yield

Definitions (3)

1. The annual rate of return on an investment, expressed as a percentage.
2. For bonds and notes, the coupon rate divided by the market price. This is not an accurate measure of total return, since it does not factor in capital gains.
3. For securities, the annual dividends divided by the purchase price. This is not an accurate measure of total return, since it does not factor in capital gains. here, also called dividend yield or current yield.

Use yield in a sentence

Investing in companies with a large dividend is a popular strategy, but a more diversified approach generally does better in the long run, as growth is often more important than yield.

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You may want to take on a high yield investment even if it has some risk when you can afford to try.

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yield maintenance pure discount instrument