Yield is the amount an investment earns during a time period, usually reflected as a percentage. Return is how much an investment earns or loses over time, reflected as the difference in the holding's dollar value.
- Which is better yield or return?
- What is the difference between yield and return target?
- Does yield mean return on investment?
- What is the difference between bond ETF yield and return?
Which is better yield or return?
If you only care about identifying which stocks have performed better over a period of time, the total return is more important than the dividend yield. If you are relying on your investments to provide consistent income, the dividend yield is more important.
What is the difference between yield and return target?
But there are several distinctions between the two. Yield refers to income earned on an investment, while its return references what an investor gained or lost on that investment. Yield expresses itself as a percentage, while the return is a dollar amount. An investment's yield is a more forward-looking assessment.
Does yield mean return on investment?
Yield is defined as the income return on investment. This refers to the interest or dividends received from a security and is usually expressed as an annual percentage based on the investment's cost, its current market value, or its face value.
What is the difference between bond ETF yield and return?
Yield is the income that a fund pays on a monthly or quarterly basis. You can take this income in the form of a check or invest it back into the fund. The total return is a function of interest paid by the bonds held in the fund. Any capital gains or losses and any increase in value of the fund portfolio are included.