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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
current yield
see YIELD.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005