What is a 'Yield'
The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.
{C}
BREAKING DOWN 'Yield'
This seemingly simple term, without a qualifier, can be rather confusing to investors.
For example, there are two stock dividend yields. If you buy a stock for $30 (cost basis) and its current price and annual dividend is $33 and $1, respectively, the "cost yield" will be 3.3% ($1/$30) and the "current yield" will be 3% ($1/$33).
Bonds have four yields: coupon (the bond interest rate fixed at issuance), current (the bond interest rate as a percentage of the current price of the bond), and yield to maturity (an estimate of what an investor will receive if the bond is held to its maturity date). Nontaxable municipal bonds will have a taxequivalent (TE) yield determined by the investor's tax bracket.
Mutual fund yields are an annual percentage measure of income (dividends and interest) earned by the fund's portfolio, net of the fund's expenses. In addition, the "SEC yield" is an indicator of the percentage yield on a fund based on a 30day period.

Running Yield
The annual income on an investment divided by its current market ... 
Current Yield
Annual income (interest or dividends) divided by the current ... 
Yield Pickup
The additional interest rate an investor receives when selling ... 
Required Yield
The return a bond must offer in order to be a worthwhile investment. ... 
Forward Dividend Yield
An estimation of a year's dividend expressed as a percentage ... 
SEC Yield
A standard yield calculation developed by the Securities and ...

Investing
Understanding the Different Types of Bond Yields
Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment. 
Bonds & Fixed Income
Advanced Bond Concepts: Yield and Bond Price
In the last section of this tutorial, we touched on the concept of required yield. In this section we'll explain what this means and take a closer look into how various yields are calculated. ... 
Bonds & Fixed Income
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 ... 
Retirement
Bond Basics: Yield, Price And Other Confusion
Investopedia Explains: Bond yield, Bond price, yield to maturity, the link between price and yield and bond price in the market. 
Active Trading
Finding The Best Yields
Using yields to supplement earnings can mean big bucks, with the right strategy. 
Bonds & Fixed Income
5 Basic Things To Know About Bonds
Learn these basic terms to breakdown this seemingly complex investment area. 
Investing Basics
Yield vs. Total Return: How They Differ
Understanding yield vs. total return is essential in constructing portfolios that meet income generating needs while providing growth for the future. 
Bonds & Fixed Income
Calculating Yield to Worst
Yield to worst is the lowest possible yield on a bond that may be called in the future. 
Bonds & Fixed Income
How To Evaluate Bond Performance
Learn about how investors should evaluate bond performance. See how the maturity of a bond can impact its exposure to interest rate risk. 
Bonds & Fixed Income
Understanding Bond Prices and Yields
Understanding this relationship can help an investor in any market.

Can I use the current yield to compare a bond to an equity investment?
Learn about the different types of yield measurements for stocks and bonds, and find out how to make careful comparisons ... Read Answer >> 
Should investors focus more on the current yield or face value of a bond?
Find out when investors should focus on a bond's current yield versus its face value, including an example of how current ... Read Answer >> 
What is the difference between yields and interest rates?
The main difference between yields and interest rates is that each term refers to different financial instruments. Yield ... Read Answer >> 
What is the difference between yield to maturity and the coupon rate?
Read about some of the basic differences between a debt security's coupon rate and its yield to maturity, and learn which ... Read Answer >> 
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 >> 
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 >>