Running Yield

DEFINITION of 'Running Yield'

The annual income on an investment divided by its current market value. Running yield is a calculation that takes the income from dividends (for stocks) or coupons (for bonds) and divides the income by the market price of the security; the value is expressed as a percentage. A security's running yield is sometimes used by investors to make buying and selling decisions and investors can use running yields to compare the expected lifetime income yield of various securities. "Running" refers to a continuous investment, such as a bond held to maturity.


Also called current return, current yield or yield to maturity (YTM), when used in reference to bonds.

BREAKING DOWN 'Running Yield'

A portfolio's running yield identifies the income or return that investors realize from all currently-held investments. A running yield is similar to a dividend yield, but applies to the investor's entire portfolio, instead of individual assets. A running yield is often calculated on an annual basis; however, certain investors may calculate this value on a more frequent basis. Investors can use running yield values to compare portfolio performance over time and to determine if the portfolio needs to be changed.

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RELATED FAQS
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  2. Can I use the current yield to compare a bond to an equity investment?

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  3. What is the difference between yield and rate of return?

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  4. What is the relationship between current yield and yield to maturity (YTM)?

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