Current yield: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add example.) |
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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 those contexts. | ||
<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%''' | |||
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== See also == | == See also == | ||
* [[Bond]] | |||
* [[Coupon rate]] | * [[Coupon rate]] | ||
* [[Dividend yield]] | * [[Dividend yield]] | ||
Revision as of 21:49, 6 August 2020
The current yield is the annual income from an investment, divided by the market price of the investment.
The yield is conventionally expressed as a percentage.
Annual income may take the form of dividends or interest.
The terms dividend yield and interest yield mean the same as current yield in those contexts.
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.
