Yield

Yield measures how much you earn from an investment, shown as a percentage of what you paid originally. This percentage includes all sources of return, such as price increases and income payments.

For instance, if you buy a stock for $100 and later sell it for $101, your yield is 1%. If instead, the stock stays at $100 but pays you a $1 dividend, that’s also a 1% yield.

Yield is especially important when evaluating bonds, showing the estimated return if every payment is made as promised. However, it's important to note that there's always a chance the issuer could miss payments or default, which would lower your actual return.