What Is a Yield?

The earnings created and realized on an investment over a specific time period are referred to as yield. It’s represented as a percentage depending on the amount invested, the current market value, or the security’s face value.
The interest or dividends obtained from owning a certain investment are referred to as yield. Yields can be classed as known or expected depending on the security’s valuation (fixed vs. changing).
Better yields are thought to indicate reduced risk and higher income, but a high yield isn’t necessarily a good thing, such as when the dividend yield rises while the stock price falls.