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Yield
Yield measures the income generated by an investment relative to its value or the amount invested. Depending on the asset, that income might come from interest, bond payments, rent, dividends or other cash flows.
Why it matters to you
Yield helps investors compare the income potential of different investments. But a higher yield is not automatically better. Higher yields can reflect greater credit risk, liquidity risk, market risk or other risks associated with the investment.
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