Cryptocurrency Q&A
What is the difference between current yield and dividend yield?
What is the difference between current yield and dividend yield?
GyeongjuGloryDays
Sun Aug 04 2024
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7 answers
921
Could you please clarify the distinction between current yield and dividend yield? I understand they both relate to investment returns, but I'm having difficulty grasping the nuances between the two. Is it accurate to say that current yield focuses on the annual income generated by a bond or other investment, while dividend yield specifically pertains to the percentage of dividends paid out by a company to its shareholders in relation to the share price? Additionally, how might these metrics differ in terms of importance and relevance when evaluating different types of investments?
7 answers
CosmicWave
Tue Aug 06 2024
Current yield is an important indicator of a bond's potential profitability for investors, reflecting the immediate income generated by the bond's interest payments.
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Maria
Tue Aug 06 2024
Dividend yield is a crucial metric in evaluating the profitability of a company's dividend payments for investors. It measures the annual dividend paid out by a company relative to its current stock price.
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ShadowFox
Tue Aug 06 2024
While both dividend yield and current yield offer valuable insights into the profitability of different investment vehicles, they serve distinct purposes and cater to different types of investors.
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Tommaso
Tue Aug 06 2024
This ratio indicates the percentage return an investor can anticipate receiving from the company's dividends, providing insight into the company's financial health and its ability to generate cash flows.
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Martina
Tue Aug 06 2024
Dividend yield is particularly relevant for investors seeking stable, recurring income streams from their equity investments. It highlights companies that prioritize dividend payments, often signaling financial stability and strong cash flows.
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