Current yield: Difference between revisions

Latest revision as of 08:23, 7 July 2022

Current yield is the annual rate of return in the form of dividend or interest payment on an investment.

It is equal to the coupon (or dividend) divided by the market price, expressed as a percentage.

It ignores any capital gains or losses.

The terms dividend yield and interest yield mean the same as current yield in this context.

Current yield example

Annual income from an investment is 3.

The current market price is 50.

Current yield = annual income / market price

= 3 / 50

= 6%

The current yield is also known as the running yield, flat yield or income yield.

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-The current yield is the annual income from an investment, divided by the market price of the investment.
+Current yield is the annual rate of return in the form of dividend or interest payment on an investment.
-The yield is conventionally expressed as a percentage.
+It is equal to the coupon (or dividend) divided by the market price, expressed as a percentage.
-Annual income may take the form of dividends or interest.
+It ignores any capital gains or losses.
-The terms ''dividend yield'' and ''interest yield'' mean the same as current yield in those contexts.
+The terms ''dividend yield'' and ''interest yield'' mean the same as current yield in this context.
-The current yield is also known as the running yield, flat yield or income yield.
+<span style="color:#4B0082">'''''Current yield example'''''</span>
+Annual income from an investment is 3.
+The current market price is 50.
+Current yield = annual income / market price
+= 3 / 50
+= '''6%'''
+The current yield is also known as the ''running yield'', ''flat yield'' or ''income yield''.
 == See also ==
+* [[Bond]]
+* [[Capital gain]]
+* [[Coupon]]
 * [[Coupon rate]]
+* [[Current]]
+* [[Dividend]]
 * [[Dividend yield]]
+* [[Interest]]
 * [[Interest yield]]
+* [[Market value]]
 * [[Yield]]
 * [[Yield to maturity]]