Yield

Yield is a financial ratio that indicates how much a company pays in dividend or interest to investors, each year, relative to security price. It is a metric of cash flow that an investor is earning on the money invested in security, expressed as a percentage based on the current market value or face value of the security. Higher yields are perceived to be an indicator of lower risk and higher income, but a high yield may not always be a positive, such as the case of a rising dividend yield due to a falling stock price.