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Yield is the interest, divided, and any other cash flow received on an investment as a percent of the principle, face value, or current market value.
For example, if you purchase a stock for $100 and it pays a $3 dividend in the first year, it provided a 3% annual yield. Likewise, if you purchase a bond for $100 and it pays you $1 of interest in the first quarter that’s a 1% quarterly yield.
Related Links
Indeed’s article on yield
US Bank: Understanding yield vs. return
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