Yield

Yield refers to the income return generated from an investment, typically expressed as an annual percentage rate based on the investment’s cost, market value, or face value. It includes interest, dividends, or other earnings received over a specific period.

Common types of yield:

• Dividend Yield (for stocks)

• Bond Yield (for fixed-income securities)

Yield Formula:

Yield (%) = (Annual Income / Investment Value) × 100

A higher yield generally indicates a better return on investment but may also suggest increased risk, especially in the case of high-yield or speculative investments.