Terminology - Investment - Yield
The annual rate of
return on an investment, expressed as a percentage (%).
For bonds &
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.
For securities /
shares / stocks 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.
The money that is returned to shareholders in the form of dividends is
also called a yield
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