Basics
What is Yield?
The income you earn on an investment as a percentage
Full Explanation
Yield tells you how much return you're getting from a stock's dividends or a bond's interest, expressed as a percentage of the price you paid.
Real-World Example
Stock costs $100, pays $4/year in dividends = 4% yield.
Pro Tip
High yields can look attractive but sometimes signal trouble — the price fell sharply.
Related Basics Terms
Learn Investing Like a Game
Bite-sized lessons, a $100K practice portfolio, and Mr. Guy to explain anything in plain English.
Create Free AccountFree forever. No credit card needed.