Defining Yield: A Word of Many Meanings

The term “yield” is thrown about often by the financial press and others. The trouble is that yield has many different meanings and implications for investors. This article will try and sort out some of the major differences. It will not, however, attempt to present mathematically all of the possible yield calculations created by institutions…

 

Screening With the Big, Safe Dividend Formula

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What’s in a Yield? Yield is a term that is used quite often in the investment universe. But it is also frequently a source of investor confusion. The problem is that “yield” has many different meanings, and thus many different implications for investors. The…

 

Chasing Dividend Yield for Income: Three Reasons to Be Wary

Financial advisors use a variety of investment strategies to replace retiree employment salaries or business income. These include bond ladders, systematic withdrawal programs (SWPs), guaranteed minimum withdrawal benefit (GMWB) products, and even strategies in the relatively new category of target payout funds. But one of the most common approaches is the dividend yield strategy. Relying…