- Yield
- The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note. The New York Times Financial Glossary
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1. [countable, uncountable] FINANCE the amount of money that you get from an investment, especially bonds:• investments with high yields
• Many investors are buying stocks because of low yields in other securities.
ˈbond yield [countable] FINANCEthe interest paid on a bond:• Government bond yields of nearly 8% look highly attractive when inflation is running at only 3%.
ˈcurrent yield [countable] FINANCEthe income received from a bond, calculated as a percentage of its present market price:• The current yield on the bond is 11.76%.
ˈdividend yield [countable] FINANCEthe gross dividend (= part of profit divided among shareholders, before tax) calculated as a percentage of the price of a share, or of a group of shares:• The dividend yield on FT-SE 100 Index companies is 3.88%.
the amount that a particular type of investment earns, expressed as a percentage of its value:• The 8.6% interest that investors can collect on 10-year government bonds is almost 2.5 percentage points higher than the earnings yield on stocks.
efˈfective yield also ˈflat yield, ˈrunning yield FINANCEthe income received from a Fixed-Interest Bond etc, calculated as a percentage of the price paid for it:• Bond prices fell Friday, raising the effective yield on bonds to 8.06 %.
ˈequity yield [countable, uncountable] FINANCEthe percentage rate of money earned on shares in general:• In the UK, dividend payouts have been rising sharply; in the US, the situation is the other way, with the equity yield at an all-time low.
— compare return on equityˈgilt yields [plural] FINANCEincome from British government bonds:• UK gilt yields remain the second highest within the EU.
ˈgross yield [countable] FINANCEthe income received from a bond etc before tax:• Estimated gross yield at 100p is 4.5% a year.
iˈnitial yield [countable] FINANCEthe income received from a bond etc when it is first bought:• Total return for fixed-income investments comprises not just the initial yield, but also interest on reinvested interest, and price change.
maˈturity yield [countable] FINANCEanother name for redemption yieldˈnet yield [countable] FINANCEthe profit from an investment to an investor after taking off dealing costs, taxes etc, usually given as a percentage of its value:• The average net yield on assets was down to 4.45% from 5% a year earlier, a result of declining interest rates.
ˈnominal yield [countable] FINANCEthe interest received from a Fixed-Interest Investment, calculated as a percentage of its price when it was first boughtproˈspective yield [countable] FINANCEthe income that you expect to get from an investmentother phrases for yield to maturity:• In general, low-coupon bonds will have a lower gross redemption yield (= before tax ) because they will be attractive to tax-paying investors concerned to maximize their net redemption yield after payment of taxes.
ˈrunning yield [countable] FINANCEthe income that an investor receives from an investment such as government stock. It is calculated by multiplying the coupon (= the investment's interest rate) by 100, and dividing the result by the price paid for the investmentˈtrue yield [countable] FINANCEthe yearly income that an investor receives from a security, calculated by dividing its nominal value by its market price and then multiplying by the dividend per cent• Farmers who practise intensive farming are aiming for maximum yields for minimum cost.
3. [countable, uncountable] COMMERCE the average amount of money that an airline gets from each of its passengers for each mile that they fly or by a hotel from each of its guests for each night they stay:• The airline's passenger revenue yield rose from 12.8 cents to 12.95 cents.
• Officials have said their pricing strategy, known as yield management, is merely a sophisticated approach to supply and demand.
— see also load factor1. [transitive] to produce income or profits:• Mining shares often yield a high level of return.
2. [transitive] to produce a product, crop etc:• These rice fields now yield 145,000 tons a year.
3. [transitive] to produce a result, answer, or a piece of information:• Writing to the agents yielded no reply.
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Percentage return on an investment, usually at an annual rate.* * *
Ⅰ.yield UK US /jiːld/ noun [C or U]► FINANCE the total amount of profit or income produced from a business or investment: »The bond's yield fell to 6.09%.
high/low yield »These securities are speculative and may involve greater risks and have higher yields.
an increase/reduction in yield »The payout on a 25-year policy is reduced to £100,271, which represents a reduction in yield from 13.3% to 13%.
»a 30-day/30-year yield
► PRODUCTION the total amount of a crop, product, etc. that is produced or supplied: »Over a 15-year period, the average yield of dairy cows in the UK had increased by 34%.
»These salts continuously bombard agricultural soils, stressing plants and reducing crop yields.
► MONEY the average amount of money that an airline receives from each passenger for each mile they travel or that a hotel receives from each guest for each night they stay: »Yield management is not really new to hoteliers, since identical rooms have been sold for higher prices during high season and for lower prices during low season for generations.
→ See also BOND YIELD(Cf. ↑bond yield), CURRENT YIELD(Cf. ↑current yield), DIVIDEND YIELD(Cf. ↑dividend yield), EARNINGS YIELD(Cf. ↑earnings yield), EFFECTIVE YIELD(Cf. ↑effective yield), EQUITY YIELD(Cf. ↑equity yield), GILT YIELDS(Cf. ↑gilt yields), GROSS YIELD(Cf. ↑gross yield), HIGH-YIELD(Cf. ↑high-yield), INITIAL YIELD(Cf. ↑initial yield), MATURITY YIELD(Cf. ↑maturity yield), NET YIELD(Cf. ↑net yield), NOMINAL YIELD(Cf. ↑nominal yield), BOND YIELD(Cf. ↑bond yield), REDEMPTION YIELD(Cf. ↑redemption yield), RUNNING YIELD(Cf. ↑running yield), TRUE YIELD(Cf. ↑true yield)Ⅱ.yield UK US /jiːld/ verb [T]► FINANCE to supply or produce a profit, income, etc.: »The stake, analysts say, could yield $700m a year in revenue.
»British shares currently yield 3.3%.
yield profit/returns »Even the most unglamorous sectors of the market can yield big returns.
► PRODUCTION to supply or produce a crop, product, etc.: »Oil fields and reserves are yielding more oil than had been thought possible, because of technological advances.
► to supply or produce information, results, etc.: yield benefits/information/results »Subsequent product tests yielded better results.
»His emails to company executives yielded no response.
Financial and business terms. 2012.
