Yield
Yield is the return associated with an investment.
Yield is the return associated with an investment. This is expressed as a percentage of the upfront cost. The yield is inclusive of all cash flows associated with an investment.
For example, a stock that costs $100 upfront and is worth $101 in the future would have a yield of 1%. Similarly, a stock that costs $100 upfront and is still worth $100 in the future, but paid a dividend of $1 would also have a yield of 1%. Yield is commonly used to define the potential gains associated with a bond.
The yield assumes an optimistic scenario in which the issuer makes all the payments on the bond. In reality, there is a risk that the issuer will default on the bond.
Yield is a fundamental financial concept used in investment analysis, portfolio management, and asset valuation. Onramp's glossary covers Yield as part of a comprehensive educational library that helps Bitcoin investors make informed financial decisions.
Frequently Asked Questions
What is Yield?
Yield is a core financial principle used by investors and analysts to evaluate investments, manage risk, and make informed portfolio decisions across all asset classes including Bitcoin.
How does Yield apply to Bitcoin investing?
Yield applies to Bitcoin just as it does to traditional investments. As Bitcoin matures as an asset class, institutional tools and frameworks involving Yield are increasingly applied to Bitcoin portfolios.
Does Onramp help with Bitcoin investment strategies?
Onramp offers Bitcoin IRA accounts, custody solutions, and educational resources that help investors apply financial concepts like Yield to their Bitcoin allocation strategy.
