Question by  ewilliamsuk (33)

What is the difference between yield and total return on investments?


Answer by  Anonymous

Yes. Yield is the percentage increase on your investment while total return is the absolute dollar amount. A 10% yield on a $100 investment would be a total return of $10.


Answer by  pedro (142)

The yield is the dividend return on the investment expressed as a percentage. The total return also includes any capital appreciation. So if you get a $5 dividend on a 100 stock, the yield is 5 percent. If the stock goes to 105, then your total return would be 10 percent.


Answer by  Stan (75)

Yield refers to an annualized number, such as 10% yield. Meaning if you kept it for a year, you can get 10cents per dollar. Total return is what you get for any amount of time. If you kept your investment for two years, you get 20 cents or 20% total return, while only earning 10% yield.


Answer by  rscracker (47)

The yield is what an investment pays, like the interest on a bond or a dividend on a stock. Yield is calculated by dividing the payment by the price of the investment, total return on investments is any income PLUS any gain on a sale of the investment. Yield plus capital gain or loss equals total return.


Answer by  luckyhappy (90)

The way your question is written there is no difference. What is the difference between DIVIDEND yield and total return on investments? makes better sense. Dividend yield is what a stock pays you and total return is what a stock pays you plus the increase (or decrease) in the stock price. Bonds also have this dual character.


Answer by  Henry16 (34)

Yield is the payout as a percentage of the base value of the underlying investment. Total return calculates the net change (sell value - purchase value - all other costs to obtain, hold or sell the investment) over the total cost of the investment product. One cost affecting the total return is often taxes.


Answer by  Richard88 (391)

Yield is measured as the dividend or coupon divided by security price. Total return is measured by the combination of ALL increases in value of the investment, which includes both the dividend/coupon payment and any capital appreciation. If a $100 stock rises to $105, and pays $7 in dividends, yield is 7% but total return is 12%.

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