Current yield

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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.

See also