Current Yield

The current yield is a financial ratio that measures the income that an investment generates in relation to its current market price. It is calculated by dividing the annual dividend paid by the investment by its current market price.

The current yield is a useful metric for comparing different investments with similar risk profiles. It can also be used to track the performance of an investment over time.

However, the current yield does not take into account the growth potential of an investment. For this reason, it is often used in conjunction with other metrics, such as the dividend yield and the price-to-earnings ratio.

The current yield is calculated by dividing the annual dividend paid by the investment by its current market price. For example, if an investment pays an annual dividend of $10 and its current market price is $100, the current yield would be 10%.

The current yield is a useful metric for comparing different investments with similar risk profiles. It can also be used to track the performance of an investment over time. However, the current yield does not take into account the growth potential of an investment. For this reason, it is often used in conjunction with other metrics, such as the dividend yield and the price-to-earnings ratio.

The current yield is a valuable tool for investors, but it is important to understand its limitations. By using the current yield in conjunction with other metrics, investors can make more informed decisions about their investments.