Yield

1. The annual rate of return on an investment, expressed as a percentage.

2. For bonds and notes, the coupon rate divided by the market price. This is not an accurate measure of total return, since it does not factor in capital gains.

3. For securities, the annual dividends divided by the purchase price. This is not an accurate measure of total return, since it does not factor in capital gains. here, also called dividend yield or current yield.

If a stock pays a $5 dividend annually and is currently trading at $100 a share, then the yield is 5%, also known as dividend yield.