Yield

Yield is the income return on an investment or deposit. It is usually stated as a yearly percentage of the amount invested or held, which makes it possible to compare returns across different products on a common basis.

The income can come from several sources. A savings account or a bond pays interest. A stock may pay a dividend. A lending position pays the interest a borrower owes. In each case, dividing the income earned over a period by the amount invested gives the yield for that period, which is then expressed on an annual basis.

Yield is not the same as total return, because it counts income only and leaves out any change in the price of the underlying asset. A yield can be fixed or variable. When it is variable, it can rise or fall over time, so a figure quoted today may not hold in the future.