Yield

Yield refers to the output or returns that an investment or business venture generates. It is often expressed as a percentage based on the investment's cost, current market value, or face value. Yields may be in the form of interest, dividends, or capital gains and can be calculated annually, semi-annually, quarterly or monthly.

Types of Yield

There are several types of yield, including:

• Dividend Yield: This is the financial ratio that shows how much a company pays out in dividends each year relative to its share price. It is calculated by dividing the annual dividends paid by the market price per share.

• Bond Yield: This is the return an investor realizes on a bond. The bond yield can be defined in different ways, serving as a measure of return to the investor.

• Yield to Maturity (YTM): This is the total return anticipated on a bond if it is held until it matures. YTM is expressed as an annual percentage rate.

• Current Yield: This refers to the annual income (interest or dividends) divided by the current price of the security.

Yield in Agriculture

In agriculture, yield refers to both the measure of the yield of a crop per unit area of land cultivation, and the seed generation of the plant itself. The yield of a crop can be affected by a number of factors including the variety of the seed, the amount of water, the quality of the soil, and the management of the crop.

Yield in Physics

In physics, yield is a term used in materials science to describe the amount of stress at which a material begins to deform plastically. Prior to the yield point, the material will deform elastically and will return to its original shape when the applied stress is removed.

Yield in Chemistry

In chemistry, yield, also referred to as reaction yield, is the amount of product obtained in a chemical reaction. The absolute yield can be given as the weight in grams or in moles (molar yield). The percentage yield (or fractional yield or relative yield), which serves to measure the effectiveness of a synthetic procedure, is calculated by dividing the amount of the desired product obtained by the theoretical yield (the amount of product that could be produced from a given amount of reactant(s)).