Yield Definition

Yield is the income generated by an investment, typically expressed as a percentage of its price or original investment.

What is Yield?

For bonds, yield reflects the return based on interest payments relative to price; for stocks, it often refers to dividend yield.

Yield can change as an asset's price moves, even if the income payment itself stays the same.

A bond paying $50 annually on a $1,000 investment has a yield of 5%.

Year-to-date refers to the period beginning on the first day of the current calendar year up to the present date.

A yield curve is a line plotting interest rates of bonds with equal credit quality but different maturities.