From the Learn Hub
Learn Hub
More glossary terms
- JOLTS (job openings and labor turnover survey)
- Earnings per share (EPS)
- Nasdaq composite
- Unit
- Value investing
Yield definition
Yield is the income you earn from an investment, usually expressed as a percentage of its price.
What is yield?
Yield is the income you earn from an investment, usually expressed as a percentage of its price. It’s a way to measure how much return you’re getting compared to what you paid.
There are different types of yield, including:
- Dividend yield: the annual dividend a stock pays out, divided by its share price.
- Bond yield: the interest payments you receive from a bond, relative to its price.
For example, if a stock costs £100 and pays a £5 annual dividend, its dividend yield is 5%. A higher yield can be attractive, but it’s important to check why – sometimes, a high yield can signal risk!
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.
For Business Saver: T&Cs apply. Max one withdrawal per day.