The formula for calculating a dividend’s yield can be broken down into two key steps. A dividend is a payment from a company or other entity to shareholders tied to ownership of a stock or another ...

One key aspect of any bond investment is its current yield. When a bond is brand-new, figuring out the bond yield is relatively simple, because in most cases, bonds are issued at prices that are close ...

When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...

Keeping your money safe is important, and risk-averse investors often turn to Treasury bills as one of the safest ways to invest money for short periods of time. With maturities that range from four ...

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call could happen at the bond's face value, or the ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

When people or businesses calculate their return on an investment, it is essential that they look at the after-tax rate of return, which takes into consideration the taxes that will have to be paid on ...

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

Earnings yields are calculated as earnings per share divided by share price. Earnings yield are best used in comparisons; a higher earnings yield is generally more favorable. Earnings yields can be an ...

Miranda Marquit has been covering personal finance, investing and business topics for almost 15 years. She has contributed to numerous outlets, including NPR, Marketwatch, U.S. News & World Report and ...

Calculate bond yield by dividing annual interest payment by current price. If bond is callable, consider potential early redemption by issuer. Use yield calculation to assess return against other ...