Yield
Co-Founder•1 min read
Yield is the return earned on an investment over a set period, usually expressed as an annual percentage of the amount invested or the current market value.
It reflects income received (such as interest or dividends) and, in some cases, capital gains or losses. Yield helps investors compare the profitability of different assets like bonds, savings accounts, or shares.
Example:
If you invest £10,000 in a bond paying £500 a year, the annual yield is 5%. If the bond’s market price falls to £9,000 but still pays £500, the current yield rises to 5.56%.
Used in:
Bonds, savings products, equities, and investment performance analysis.