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Home Definitions

What is Yield? Definition or Meaning

Posted by Bizversity

The yield is the prize you get for investing in something! Sometimes the prize is zero, suggesting the investment made no money but it can also be a high, positive number suggesting huge returns in the form of interest or dividends.

For example…

Nina has a hundred shares in a big pharmaceutical company. If the dividend-price for each share is one dollar per share and the current share price is ten dollars per share, then the dividend’s yield is one divided by ten times a hundred, which comes out as ten percent. That’s a great yield!

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