Yield (finance)

In finance, the term yield describes the amount in cash (in percentage terms) that returns to the owners of a security, in the form of interest or dividends received from the security. Normally, it does not include the price variations, distinguishing it from the total return. Yield applies to various stated rates of return on stocks (common and preferred, and convertible), fixed income instruments (bonds, notes, bills, strips, zero coupon), and some other investment type insurance products (e.g. annuities).