|
Gross yield |
|
|
|
Home Site Map Add Term Search About Us Contributors |
Gross yieldThe yield on a security before the deduction of tax.Yield is a measure of the return on an investment, through dividends or interest, compared with its price. The higher the yield, the greater the return you are making on an investment relative to its price.To see how to calculate yield, see 'dividend yield'.Similar MatchesGross WeightGross WeightThe full weight (including goods and packaging) of shipment. Gross domestic product (GDP)Gross domestic product (GDP)The market value of goods and services produced over time including the income of foreign corporations and foreign residents working in the U.S., but excluding the income of U.S. residents and corporations overseas. Grossing upGrossing upUK shareholders receive dividends with a tax credit of 10%. This means that a notional 10% tax has already been paid by the company paying the dividend and the amount you receive as a shareholder is 'net' of that tax payment.But in order to calculate your individual tax liability on the income, which may be higher than 10%, you have to 'gross up' the dividend - that is add back the tax deducted - and work out your tax liability from the gross figure.Example:You hold 1,000 shares in Bigyield plc which announces that it is paying a dividend of 9p per share. You actually receive £90 as a net dividend, but the company has also notionally but not actually paid £10 of the gross amount as tax on your behalf. So, although you only received £90, the tax position is: Actually received : £90.00 Tax credit: £10.00 Grossed up income: £100.00If you are a higher rate taxpayer, the amount you have to pay in total on the dividend is 32.5% which, on £100, is £32.50. Since you have a tax credit of £10, the additional amount payable is £22.50.Note that £22.50 is exactly a quarter of £90. A quick way for a higher rate taxpayer to calculate the additional tax payable on a UK dividend is to multiply the net amount received (£90) by 25%. Gross domestic productGross domestic productThe total value of new goods and services produced in a given year within the borders of a country, regardless of by whom. It is "gross" in the sense that it does not deduct depreciation of previously produced capital, in contrast to NDP. Adjusted gross income (AGI)Adjusted gross income (AGI)Gross income less allowable adjustments, is the income on which an individual is taxed by the federal government. Further SuggestionsAdjusted Gross IncomeGross interest Gross sales Gross profit Gross per broker Gross income gross Gross Lease gross interest adjusted gross income gross domestic product Gross Income Gross national product Gross spread Gross parity Gross profit margin gross margin gross national product gross rate Gross output gross income gross redemption yield Gross lease gross profit Gross Income Multiplier |
|
|
|