yield

YEELD /jiːld/
nounverbB2GMATGRESAT
formalbusiness

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

benchmark, accommodative

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