Current yield
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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.
