yield

YEELD /jiːld/
nounverbB2IELTSTOEFLGMATGRECAT
businessfinancialgeneral

The financial return or earnings generated on an investment; or to produce/provide a crop or result.

In economics, focuses strictly on the percentage rate of income returned from capital, such as bond interest.

The story behind the word. In Anglo-Saxon England, gieldan meant paying taxes or rendering a debt. If you owed the king money, you had to yield your payment. Over time, the word shifted from paying taxes to describing what land 'pays back' to a farmer in wheat, and finally to what bonds pay back to an investor in cash interest.

Word relationships

  • return: 'Return' includes capital gains plus income, whereas 'yield' specifically measures periodic cash income relative to price.
  • harvest: 'Harvest' refers to gathered crops, while 'yield' can mean return per acre or financial interest rate.
  • loss: A reduction in financial value or negative return on capital.

Commonly confused with

  • revenue: Revenue is total gross cash taken in, whereas yield is the percentage rate of return on invested capital.

Word family

  • yielding (adjective): Giving a specified financial return, or compliant.
  • unyielding (adjective): Not giving way or failing to produce return.

Collocations

  • bond yield
  • high yield
  • yield curve
  • dividend yield

Idioms & expressions

  • yield results
  • yield fruit

Example sentences

  • "Investors moved capital into government bonds as benchmark 10-year Treasury yields rose sharply." Bond markets (Wall Street Journal)
  • "The dividend yield on energy stocks attracted conservative investors seeking steady income." Corporate investment

Memory hook

YIELD is what your money PAYS back to you annually like a field yielding crops. The percentage return paid back on capital.

When not to use

Do not confuse financial noun 'yield' with total volume produced ('output'); yield measures efficiency or return percentage.

Fun facts

  • The word 'guild' (an association of craftsmen) comes from the same root (geldan), as members paid dues into a shared pool!

Related words

output, benchmark

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