The term Yield refers to the income generated from an investment during a particular period. Yield is mainly reflected in percentage and is calculated by dividing dividends, coupons, or net income by the value of an investment.
Fluctuating securities are more susceptible to rate change or change in value. Therefore, it is usually seen that investments that are more exposed to fluctuations offer a higher rate of returns.
*Cost Yield: When the calculation is based on the original price of the security, it is known as Yield on cost (YOC), or cost yield.
*Current Yield: Investors who, instead of the purchase price, use the current market price to calculate the Yield from an investment in stocks.