Plain-English definitions, reviewed by an independent investor
Yield
Yield is the income return on an investment, usually as a percentage of its price.
Yield is the income return on an investment, usually as a percentage of its price.
Yield = Income ÷ Price × 100%
Why it matters
It is the income lens on stocks, bonds, and funds, separate from price gain.
Common confusion
Headline yield can mislead if the payout is unsustainable or price-distorted.
Frequently Asked Questions
Yield vs return?
Yield is income only; total return adds price change.
Why does yield rise when price falls?
Income is fixed, so a lower price means a bigger percentage.