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Glossary · investing

What is Yield?

The income an investment produces relative to its price, expressed as a percentage.

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Yield can refer to bond yield, dividend yield, or savings APY — always the annual income divided by the current price.

High yield always deserves a second look. On bonds, high yield often signals higher default risk; on stocks, it can flag a distressed business or a coming dividend cut.

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Frequently asked questions

Yield to maturity vs current yield on a bond?

Current yield = annual coupon / price. Yield to maturity also factors in capital gain or loss from holding to maturity — a more complete measure.

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