In finance, yield is the income return on an investment, such as the interest or dividends received from holding a particular security. This metric is usually expressed as an annual percentage rate based on the investment’s cost, its current market value, or its face value. Bonds, for example, typically offer a fixed yield based on the coupon rate, whereas the yield on stocks can vary significantly with changes in dividend payouts or stock prices.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.