yield
YEELD
/jiːld/
The financial return or income generated by an investment, expressed as an annual percentage.
Represents the interest or dividend percentage returned relative to an asset's price.
The story behind the word. Derived from Old English gieldan meaning to pay or render back. Agricultural crops 'yielded' grain, which was adapted into financial terminology for annual investment payoffs.
Word relationships
- return: Return includes total capital appreciation and cash flow; yield focuses specifically on cash income ratio.
Commonly confused with
- price: In bond markets, bond prices and bond yield movements have an inverse relationship.
Word family
- yielding (adjective): Producing profit or compliance.
Collocations
- bond yield
- yield curve
- high-yield
- yield rate
Example sentences
- "When central banks raise rates, government bond yield percentages typically increase across all maturities." Bond markets
- "Investors sought higher yield in emerging markets during periods when central banks maintained near-zero rates." Investment strategy
Memory hook
YIELD is what the field GIVES BACK to the farmer at harvest. The percentage paid back to investors.
When not to use
Do not confuse economic investment yield with yielding (giving up right of way) in traffic.
Fun facts
- An inverted yield curve—where short-term yields exceed long-term yields—has preceded every US recession since 1950.
Related words
Also appears in
- Leadership → Submission & Obedience
- Conflict → Compromise & Concession
- Finance → Investment & Portfolio Management
- Finance → Stocks, Bonds & Derivatives
- Nature → Forestry & Agriculture
- Economic Theory & Analysis → Macroeconomic Indicators
- Economic Theory & Analysis → Agrarian Economics
- Environmental Policy & Sustainability Economics → Sustainable Agriculture & Farming
- Food Science & Culinary Craft → Agricultural Supply Chains
- Food Science & Culinary Craft → Genetically Modified Organisms
- Everyday Transportation & Driving → Driving Maneuvers & Parking
- Everyday Transportation & Driving → Driver Licensing & Rules
- Agriculture & Farming → Crop Harvesting & Storage
- Agriculture & Farming → Orchards & Viticulture
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