Current yield: Difference between revisions
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imported>Doug Williamson (Update - source - Association of Corporate Treasurers - email from Naresh Aggarwal 16 Feb 2022.) |
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It is equal to the coupon (or dividend) divided by the market price, expressed as a percentage. | It is equal to the coupon (or dividend) divided by the market price, expressed as a percentage. | ||
It ignores any capital gains or losses. | |||
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== See also == | == See also == | ||
* [[Bond]] | * [[Bond]] | ||
* [[Capital gain]] | |||
* [[Coupon]] | * [[Coupon]] | ||
* [[Coupon rate]] | * [[Coupon rate]] | ||
* [[Current]] | |||
* [[Dividend]] | * [[Dividend]] | ||
* [[Dividend yield]] | * [[Dividend yield]] | ||
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.
