investing

yield

The income generated by an investment, expressed as a percentage of the investment's cost or current value.

Example

"The bond had a yield of 4%, meaning it paid $40 per year for every $1,000 invested."

💡 Memory Tip

A farm YIELDS a harvest. An investment YIELDS returns — what it produces for you.

Etymology

From Old English 'gieldan' meaning 'to pay, repay' — what an investment pays back.

Common Misspellings

yeildyeldyiledyiield

Related Terms

dividendbondinterest rate

See Also

return

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