Gross Yield

What is the 'Gross Yield'

The gross yield is the yield on an investment before the deduction of taxes and expenses. Gross yield is expressed in percentage terms. It is calculated as the annual return on an investment prior to taxes and expenses divided by the current price of the investment.

BREAKING DOWN 'Gross Yield'

For example, a stock that pays $3 in annual dividends and is currently trading at $60 has a gross (dividend) yield of 5.0%. If there is a withholding tax of 10% on the dividend payments, the net dividend yield would be 4.5%. In the case of property investments, the difference between gross and net yields can be quite significant, since rental income can be substantially eroded by operating expenses such as maintenance expenditures, insurance and property taxes.

RELATED TERMS
  1. Yield

    The income return on an investment. This refers to the interest ...
  2. Running Yield

    The annual income on an investment divided by its current market ...
  3. Yield On Cost - YOC

    The annual dividend rate of a security divided by the average ...
  4. Gross Income

    1. An individual's total personal income, before accounting for ...
  5. Forward Dividend Yield

    An estimation of a year's dividend expressed as a percentage ...
  6. Indicated Yield

    The dividend yield that a share of stock would return based on ...
Related Articles
  1. Personal Finance

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  2. Investing

    Calculating Capital Gains Yield

    Capital gains yield refers to a security’s appreciation or depreciation during the time it’s held.
  3. Markets

    Dividend Yield For The Downturn

    High-dividend stocks make excellent bear market investments, but the payouts aren't a sure thing.
  4. Markets

    Bond Yields: Current Yield And YTM

    A bond's current yield, also called "bond yield," is the interest it pays annually divided by the bond's price. A stock's current yield, also called "dividend yield," is the sum of its annual ...
  5. Markets

    A History of the S&P 500 Dividend Yield

    Find out why the dividend yield for the S&P 500 Index remains historically low, and what dividend yields used to look like before the Internet Age.
  6. Investing

    How To Value A Real Estate Investment Property

    Two common methods for real estate valuation are the discounted net operating income and gross income multiplier approaches.
  7. ETFs & Mutual Funds

    4 Dividend ETFs to Help Fund Your Retirement

    Investing in stocks that pay out dividends can be a smart way to establish a reliable income stream in retirement. Here are four low-fee dividend ETFs.
  8. ETFs & Mutual Funds

    What You Need To Know About Bond ETF Yields

    When it comes to fixed income investing, yield is an important component of a bond investment’s total return to accurately assess if it's the right move.
  9. Trading

    Finding The Best Yields

    Using yields to supplement earnings can mean big bucks, with the right strategy.
  10. Managing Wealth

    4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
RELATED FAQS
  1. What size of annual dividend yield is typical of companies in the financial services ...

    Learn the importance of calculating the annual dividend yield and how income investors can use it to analyze companies in ... Read Answer >>
  2. What is the difference between yield and rate of return?

    Read about the differences between yield and rate of return. See why many novice investors often struggle more with the concept ... Read Answer >>
  3. What is the difference between the yield of stock and the yield of a bond?

    Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond ... Read Answer >>
  4. What is the difference between yield and dividend?

    Learn how to differentiate between dividend yield and dividend return, and see why dividend yield is the more popular rate ... Read Answer >>
  5. Are gross sales and taxable gross sales the same thing?

    Learn the difference between gross sales and taxable gross sales and how these terms relate to the profit and tax liability ... Read Answer >>
  6. Which is more important - dividend yield or total return?

    Learn to distinguish between those times when dividend yield or total return is a more useful performance metric for a company's ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center