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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Open Decision Lab →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.
Related terms
Dividend yield
Annual dividend divided by share price, expressed as a percentage.
APY (annual percentage yield)
The yearly return on savings after compounding is factored in, expressed as a percentage.
Bond
A loan you make to a company or government in exchange for regular interest payments.
Yield curve
A chart of bond yields at different maturities, usually for government debt.