For example, a stock selling at $50 and with an annual dividend of $5 per share yields 10%. Yield is the term for earnings generated and realized on an investment over a specific period, expressed in a percentage. APY is calculated by: the dividend or interest earned, and ignores capital gain. If there are no capital gains, the dividend yield is the entire return on the stock.It is also called the price-dividend ratio. Related: Term structure of interest rates. Yield curve The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. The dividend per share that a company pays divided by the share price. Types of yield in finance Dividend yield. The term yield is used to describe the return on your investment as a percentage of your original investment. Dividend yield compares a company’s annual dividends to its share price. A high yield gives owners a chance to recover their investment sooner (reducing risk). If you invest in a bond mutual fund, the fund will list the average interest it earns on all of its bonds. Yield definition is - to bear or bring forth as a natural product especially as a result of cultivation. The Yield Curve is a graphical representation of the interest rates on debt for a range of maturities. The coupon rate is the interest rate that the issuer of a bond or other debt security promises to pay during the term of a loan. Harvey (1991) finds that the inversions of the yield curve (short-term rates greater than long term rates) have preceded the last five US recessions. Coupon rate. If a stock can be expected to pay out Rs 1 as dividend over the next year and is currently trading at Rs 50, its dividend yield is 2%. Like coupon yield, current yield is easy to understand, at least on a superficial level. Capital gains yield (CGY) is the price appreciation on an investment or a security expressed as a percentage. But a deeper level exists, and because of that, current yield is the most often misused kind of yield. Yield in the case of stocks. How to use yield in a sentence. It is a popular method used by dividend investors, who prefer to take advantage of regular dividend payments. Interest Yield. Yield is the ratio of annual dividends divided by the share price. For example, a bond that … It shows the yield an investor is expecting to earn if he lends his money for a given period of time. Yield is one part of the **total return of holding a security. This is reported on the financial statements of a publicly-traded company.It is a measure of the return an investor makes for every dollar invested in the company. The graph displays a bond's yield on the vertical axis and the time to maturity across the horizontal axis. Synonym Discussion of yield. 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