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Yield
Yield is the yearly rate of income return on a capital investment. This
can be in the form
of interest or dividends received from a security.
Yield is calculated by taking into account
the current market value or face value of a
security and it's initial investment cost.
Yield is expressed as a percentage figure when it is worked
out. It can be quite confusing.
Simply put,if you buy a stock for $30 and its current price and annual
dividend is $33
and $1, respectively, the "cost yield" will be 3.3% and the
"current yield" will be 3%.