Yield

Yield

Yield

oboloo’s Glossary

Yield Definition

When it comes to investments, your yield is the return on your investment. In other words, it’s the amount of money you make from investing in a security, like a bond or stock. For example, if you buy a $1,000 bond with a 5% coupon rate and hold it until it matures, you’ll earn $50 in interest each year. When it comes to stocks, your yield is the dividend payments you receive divided by the price you paid for the stock. For example, if you buy a stock for $100 that pays out $5 in dividends each year, your yield would be 5%.