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Yield

Yield is the income an investment pays you each year, expressed as a percentage of its price. It's how you compare income across investments: a 5% yield pays $50 a year per $1,000 invested, whether it comes from dividends or bond interest. Just remember — unusually high yields usually mean unusually high risk.

Example: A stock priced at $100 paying $3 in annual dividends has a 3% yield.

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Educational content only — not financial advice.