Yield is income-only return from investments through dividends or coupon payments. It’s calculated by dividing the total annual income by total investment value and is expressed as an annual percentage.
What is yield?
Yield can come from dividend-paying stocks and coupon-issuing bonds. Stockholders usually receive dividends quarterly but can also receive them monthly, semiannually, or annually. High-yield stocks usually come from stable, established businesses. Bond investors normally receive coupon payments every six months. Real estate investments can also provide regular yield.