yield

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Yield

The percentage return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.

Yield

The income one receives from an investment, rather than its capital appreciation. The yield is calculated as the coupons or dividends the investor receives in a year expressed as a percentage of the cost of the investment.

yield

The percentage return on an investment. A given investment can have a variety of yields because of the many methods used to measure yield. For example, a bond's yield may be stated in terms of its returns if held to maturity, if held to the call date, or if held to the put date; or the yield may be calculated simply on the basis of the interest the bond pays compared with its current market price. Also called return. See also current yield, dividend yield, yield to average life, yield to call, yield to maturity, yield to put.

Yield.

Yield is the rate of return on an investment expressed as a percent.

Yield is usually calculated by dividing the amount you receive annually in dividends or interest by the amount you spent to buy the investment.

In the case of stocks, yield is the dividend you receive per share divided by the stock's price per share. With bonds, it is the interest divided by the price you paid. Current yield, in contrast, is the interest or dividends divided by the current market price.

In the case of bonds, the yield on your investment and the interest rate your investment pays are sometimes, but by no means always, the same. If the price you pay for a bond is higher or lower than par, the yield will be different from the interest rate.

For example, if you pay $950 for a bond with a par value of $1,000 that pays 6% interest, or $60 a year, your yield is 6.3% ($60 ÷ $950 = 0.0631). But if you paid $1,100 for the same bond, your yield would be only 5.5% ($60 ÷ $1,100 = 0.0545).

yield

the return on a FINANCIAL SECURITY, expressed in money terms, related to the current market price of that security, to show the percentage return on the investment. Yield can refer to the INTEREST RATE payable on the market price of a BOND (INTEREST YIELD); or DIVIDEND rate payable on the market price of a SHARE (DIVIDEND YIELD); or company profit per share (after tax) related to the price of the share (EARNINGS YIELD). For example, a bond with a face value of £100 and a rate of interest of 10% generates a nominal return of £10 per year. If, however, the bond can be purchased for £50 on the open market, then the yield is 20%, representing 20% return on the £50 invested. The lower the purchase price of a bond or share with a given coupon rate of interest or dividend or profit, the higher its yield will be, and vice versa. There is thus an inverse relationship between the price paid for a bond or share and its yield. The term flat yield or current yield is sometimes used to describe a yield calculation which does not take account of the redemption value of a bond. Yields which take into account not only the annual interest receivable but also any capital profit/loss on redemption of the bond are termed redemption yields. Where the current market price of a bond is below its specified redemption price, the potential profit on redemption must be divided by the number of years to the redemption date of the bond, and this annual profit equivalent added to the flat yield on the bond to arrive at its redemption yield. Where the current market price of the bond is above its specified redemption price the annualized potential loss on redemption must be deducted from the flat yield in calculating redemption yield. For example, a bond offering an interest payment of £10 per year and with a current market price of £50 would have a flat yield of 20%. If, in addition, the specified redemption price of the bond is £100 in five years' time, then the bond promises a potential profit of £100 – £50 = £50 which is equivalent to an annualized profit of £50 ÷ 5 = £10 per year or an additional return of £10 ÷ £50 or 10%. This would be added to the flat yield of 20% to give a redemption yield of 30%.

yield

the return on a FINANCIAL SECURITY, expressed in money terms, related to the current market price of that security to show the percentage return on the investment. For example, a financial security (e.g. a BOND) with a face value of £100 and an INTEREST RATE of 5% generates a nominal return of £5 per year. If, however, the bond can be purchased for £50 on the open market, then the yield is 10%, representing 10% return on the £50 invested. The lower the purchase price of a bond or share with a given coupon rate of interest or dividend or profit, the higher its yield will be, and vice-versa. There is thus an inverse relationship between the price paid for a bond or share and its yield.

The term flat yield or current yield is sometimes used to describe a yield calculation that does not take account of the redemption value of a bond. Such a calculation would be appropriate for IRREDEEMABLE FINANCIAL SECURITIES. Yields that take into account not only the annual interest receivable but also any capital profit/loss on redemption of the bond are termed redemption yields. Where the current market price of a bond is below its specified redemption price, the potential profit on redemption must be divided by the number of years to the redemption date of the bond, and this annual profit equivalent added to the flat yield on the bond to arrive at its redemption yield. Where the current market price of the bond is above its specified redemption price, the annualized potential loss on redemption must be deducted from the flat yield in calculating redemption yield. For example, a bond offering an interest payment of £5 per year and with a current market price of £50 would have a flat yield of 10%. If, in addition, the specified redemption price of the bond is £100 in five years’ time, then the bond promises a potential profit of £100 - £50 = £50, which is equivalent to an annualized profit of £50 ÷ 5 = £10 per year or an additional return of £10 ÷ £50 or 20%. This would be added to the flat yield of 10% to give a redemption yield of 30%. Such a calculation would be appropriate for REDEEMABLE FINANCIAL SECURITIES.Yield can refer to the interest rate payable on the market price of a bond (INTEREST YIELD); or DIVIDEND rate payable on the market price of a SHARE (DIVIDEND YIELD); or company profit per share (after tax) related to the price of the share (EARNINGS YIELD).

yield

A measurement of the rate of earnings for an investment.

References in periodicals archive ?
Among them the genotypes 3 5 6 13 and 15 were high yielders (above the grand mean yield) and their deviation from regression were also minimum (S2di = 0).
The highest yielders are fed up to an additional 15kg in the out-of-parlour feeders.
``Electra (7.9t/ha) Diane (7.5t/ ha) Aurora (7.4t/ha) and Liviola (7.3t/ha) were identified this year as the highest yielders of retted straw'' explained Dr Jim Dimmock, crop scientist for the flax and hemp project at Bangor.
The dollar was mixed overnight as it see sawed against high yielders but saw weakness against the sterling despite European equity markets trading higher.
Out of parlour feeders are used to top up the high yielders, benefiting cows in early lactation and helping prevent later lactation milkers becoming too fat pre-calving.
Providing straw stocks hold out this summer, the high yielders will stay in between the night and morning milkings, to ensure they have plenty of time to eat their ration.
Therefore, we may have seen an end to the accommodative easing policy from the RBA which should start top raise interest rate expectations for the currency which is already one of the high yielders. The economic docket will give us some insight into future activity with the Conference board leading index and the NAB business confidence readings on tap.
During the summer the cows are paddock-grazed, ensuring they receive fresh grass each day, and the high yielders come inside during the night, where they receive a similar ration to the one they eat during the winter.
While this may be a pair that has greater stability than the standard pair due to its composition of two high yielders, the risk of a breakout is still very high.
"The cows are out at grass during the day from the end of April and are housed from the end of September-early October, depending on the weather, but we are feeding them all the year round with the complete diet mix with the cows split into two groups; high yielders, and low yielders with dry cows," said Geoff Wilson.
However, while this currency is no longer among the ranks of high yielders; it still has vital stock in the performance of the global economy and markets.
Another feature is that the speed of the parlour's rotation can be set to accommodate low and high yielders.