current yield


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Current yield

For bonds or notes, the coupon rate divided by the market price of the bond.

Current Yield

The income from dividends (for stocks) or coupons (for bonds) divided by the market price of the security, expressed as a percentage. This is sometimes used in making the decision of whether or not to buy a security, but it does not accurately reflect its return, as the market price changes constantly. It is also called the current return or the running yield.

current yield

The annual rate of return received from an investment, based on the income received during a year compared with the investment's current market price. For example, a bond selling at $800 and paying an annual interest of $80 provides a current yield of $80/$800 , or 10%. Also called rate of return, running yield.

Current yield.

Current yield is a measure of your rate of return on an investment, expressed as a percentage. With a bond, current yield is calculated by dividing the interest you collect by the current market price.

For example, if a bond paying 5% interest, or $50, is selling for $900, the current yield is 5.6%. If the market price is $1,200, the current yield is 4.2%. And if bond is selling exactly at par, or $1,000, the current yield is 5%, the same as the coupon rate.

If you own a stock, its current yield is the annual dividend divided by its market price.

current yield

see YIELD.

current yield

see YIELD.
References in periodicals archive ?
Credit Suisse said that the current yield is not indicative of future quarterly coupon payments, if any, on the ETNs.
It is assumed that interest payments are reinvested at the current yield.
An investment strategy predicated on Treasury bills and money-market funds may have produced high yields in the 1980s, but with current yields on these issues now so low, you may find it pays to be more creative.
If you bought the bonds at 110, now your current yield would be 7.
Gain an insight into basic financial measures such as current yield, yield-to-maturity, and total return analysis
But learn why you should be very careful at the current yield levels, and then read about Goodyear Tire & Rubber Company (NYSE:GT) and Teekay Shipping (NYSE:TK).
This issue is attractive both in terms of current yield and yield to call (12.
This allocation is expected to provide an attractive current yield while offering the potential for capital appreciation.
PREI said investors' focus on current yield is keeping downward pressure on cap rates, a trend that could contribute to the index seeing its best year since 2000.
Fitch is skeptical that management will be able to follow through with this plan given the current yield on its existing debt.