Yield definition

Yield has a particular significance in relation to IG's platform. Here, we define yield in general investing and explain what it means to you when trading with IG.

Yield is the income earned from an investment, most often in the form of interest or dividend payments. Yield is one of the ways in which investments can earn a trader money, with the other being the eventual closing of a position for profit.

Most often, yield will be expressed as a yearly percentage of either the value of the original investment, or of its current market value.

The two assets that are most commonly associated with yields are shares and bonds. Share yields are usually given as a percentage of the current share price of a company. That means that an investor who sees the value of their shares increase will see greater return on their investment if dividend levels remain constant.

Bond yields can be given as either a percentage of the bond price when it is issued, a percentage of the current price of the bond, or an estimate of what the bond’s yield will be if it is held to maturity.

With IG

A CFD position on a share that pays a dividend will see its price adjusted to reflect the dividend payment. 

Visit our education section

Find out more about shares trading with IG.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Help and support

Get answers

Or ask about opening an account on 1800 601 799, or +61 (3) 9860 1799, or helpdesk.au@ig.com.

If you're calling from NZ, you can contact us on 0800 442 150

We're here 24hrs a day from 3pm Saturday to 9am Saturday (AEDT).