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Yield gap |
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Yield gapA comparison between the average yield from shares (dividend yield) and the average current yield from long dated gilts (15 years or more to redemption).Similar MatchesNegative yield curveNegative yield curveWhen the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing. Annual percentage yield (APY)Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1). Yield curbYield curbApplies mainly to convertible securities. Difference in current yield between the convertible and the underlying common. Discount yieldDiscount yieldThe yield on a security purchased at a price below its face value. Earnings yieldEarnings yieldThe earnings of a company are its annual profits after deduction of tax, dividends to preference shareholders and bondholders. They are usually expressed on a per-share basis (e.g. 7p), and the earnings per share (EPS) figure is calculated by dividing total earnings by the average number of shares in issue for the relevant accounting period.e.g. earnings or £2m, with 10m shares in issue would give an EPS of 20pThe earnings yield is the EPS as a percentage of the current market price of the share. So if the EPS was 7p and the current market price is 116p, the earnings yield7 / 116 x 100 = 6.03%Earnings yield is not used as commonly as its reciprocal measure, the P/E ratio. On the same figures, the P/E would be:116 / 7 = 16.6 Further Suggestionsyield to maturityEffective yield Corporate equivalent yield bond interest yield Parallel shift in the yield curve Constant yield method net yield Annual effective yield Equivalent bond yield Pure yield pickup swap Indicated yield Yield burning Relative yield spread Inverted yield curve Realized compound yield Nominal yield Steepening of the yield curve Yield differential or pickup redemption yield Bond equivalent yield Coupon equivalent yield Yield Yield advantage gross yield Net yield |
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