What is the difference between Yield and Return? - ProProfs Discuss
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What is the difference between Yield and Return?

Asked by Deborah , Last updated: Jul 04, 2024

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2 Answers

M. Delilah

M. Delilah

M. Delilah
M. Delilah

Answered Jul 01, 2020

Return can be explained as the earning derived from an investment in a particular range of time. Return basically deals with interest, capital gain, an increase of share price, and dividends. Returns on another thought can be referred to as the total transition in the worth of investment in conjunction with the expectation that the dividends and capital gains are reinvested. Yield is eventual or rather forthcoming; Return can also be referred to as backdated instead of eventual because it is referred to as what one has earned in the past.

Yield weighs income in terms of interest and proceeds that are derived from an investment leaving behind the capital profit. When talking about Yield, the income is considered to be in a certain time range, which is made yearly, with the expectation that the proceeds will continue to be accrued at the same rate. Unlike return, the yield is the measure of income and not capital gains.

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J. Alva

J. Alva

J. Alva
J. Alva

Answered Jun 23, 2020

Yield and return are standard terms in the stock market game. Yield is configured for specific time periods in the future and then annualized, assuming the rate of return to be the same throughout the financial year. Return on investment, on the other hand, is always about a time period in the past, as it describes the amount earned by the investor includes income from both interests and dividends, coupled with capital gains that indicate a rise in the prices of shares.

Basically, the return is from the prior time period, and yield is a future time period. It is also helpful to the investor to be able to understand the difference between yield and return

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