Terminology - Investment - Yield

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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