Yield Definition – What is Yield? | CFI JO
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A yield is a return generated from an investment over a particular period, usually in the form of interest or dividend payments. Yields are typically expressed in percentage.


 Yield is commonly mentioned across a variety of products including:


  • Bond yield
  • Dividend yield
  • Stock yield


Changes in yields can tell investors many things. A higher yield could be an indication of a lower risk and bigger income but that should be taken into context. The same scenario could mean a declining security price leading to a higher yield.


At the same time, a company paying higher dividends may be performing well and in peak conditions but this could also mean overpaying and potentially putting their financials at risk if the company is not very profitable.


Whatever the case is, yield is an important measure that should be looked at and followed across different periods.


 Key takeaways


  • Yield is the earnings measure of a specific investment
  • Higher yields are seen as an indication of lower risk and higher income but not necessarily a positive factor which is the case for a higher dividend yield when a stock price drops
  • There are different types of yields including yield-to-maturity, yield-to-worst, and yield-to-call in the case of callable bonds.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group is globally regulated with subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financial Invest for
Financial Brokerage Ltd
Al Rabieh Towers, Al Rabieh

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We would like to remind that while we endeavour to provide best possible services, CFI provides execution only services and any information, reports, opinions, commentary or other material he received directly from CFI or from its employees or through any provided analytical tools or third party research provided to the client from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions. The Client commits to make his own research and from external sources as well to make any investment. The Client agrees that CFI will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of any report provided should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.

Forex and CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financial Invest for Financial Brokerage Ltd provides general information that does not take into account your objectives, financial situation or needs. The content of this website must not be interpreted as personal advice. Please ensure that you understand the risks involved and seek independent advice if necessary.

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