Yield


Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Idioms, Encyclopedia, Wikipedia.

Yield

Current return from an investment or expenditure as a percentage of the price of investment or expenditure.

The term yield is the proportionate rate that income from an investment bears to the total cost of the investment. For example, a ten dollar profit on a one hundred dollar investment represents a 10 percent yield. Thus, a yield for stock dividends or bond interest paid will be expressed as a percentage of the current price. A yield can also refer to the bond coupon or stock dividend rate divided by the purchase price.

There are several specific types of yields. On bonds, a current yield is the annual interest paid divided by the current market price of the bond. As interest rates fall, the market price of the bond rises; as they rise, bond prices fall. The current yield reflects the actual rate of return on a bond. For example, a 9.5 percent bond with a face value of $1,000 yields $95 per year. If this bond is purchased in the secondary bond market for $1,100, the interest will still be $95 a year, but the current yield will be reduced to 8.6 percent because the new owner paid more for the bond.

A nominal yield is the annual income received from a fixed-income security divided by the face value of the security. It is stated as a percentage figure. For example, if a security with a face value of $5,000 generated $500 in income, the nominal yield would be 10 percent.

On bonds, a yield to maturity is a complex calculation that reflects the overall rate of return an investor would receive from a bond if the bond is held to maturity and the interest payments are reinvested at the same rate. It takes into account the purchase price, the coupon yield, the time to maturity, and the time between interest payments.

A net yield is the rate of return on an investment after deducting all costs, losses, and charges for investment. A dividend yield is the current annual dividend divided by the market price per share of stock. A yield spread refers to differences in yields between various issues of Securities.

References in periodicals archive ?
On average, the yield curve inversion appears 22 months before a recession, said Credit Suisse.
Ten-year Treasury yields closed at a paltry 1.49% on Tuesday, so it's not particularly surprising some investors are clamoring for high dividend strategies and doing so with exchange traded funds.
The sharp decline in yields on US government bonds (considered one of the safest worldwide) this year means they will need to consider whether it is worth taking on additional risks in order to maintain a specific nominal level of yield, or simply reduce yield expectations in line with those of the market.
Location: Annual net yield International City 8.2% Remraam 7.6% The Greens 7.5% Discovery Gardens 7.1% Dubai Production City 7.0% The Lakes 6.7% Jumeirah Village Apartments 6.2% The Views 6.2% Dubai Sports City 6.0% Jumeirah Village Villas 6.0%
(1999) showed that although number of pods per productive node was the critical to yield through its effects on pod and kernel number, compensation between number of kernels and their size negated any positive effect on total yield.
"This means it should be possible to breed for yield stability and high yields together without having to sacrifice one for the other," concluded Prof Penfield.
These yields have come down significantly since the beginning of the year, having stood at 8.35, 8.
"GLBY provides investors a simple and cost-effective way to access multiple economies, interest rates and yield curves with the prospect of higher return potential and lower absolute risk than domestic bond markets alone.
In general, Kabuli chickpeas have low grain yield due to scarcity of productive cultivars and non-availability of varieties with resistance against various abiotic and biotic stresses.
In case of Gyeongsan, DM yield in rye vetch mixture was higher with 100 kg N/ha than control and had tendency to increase from 50 to 100 kg N/ha but not different with 150 kg N/ha level.
The issue of yield outcomes resulting from GM crop technologies is complex, especially when comparisons are made across countries and regions.