Definition of yield

Generally, the income generated by an asset on an annual basis, expressed as a percentage of the asset's purchase or market price. For stock investments, the yield is the total dividend for the latest year as a proportion of the share price. For bonds, the yield is the same as the coupon rate (if the bond is purchased at par or is trading at par). Any increase or decrease of the yield relative to the coupon rate is roughly proportionate (though in the inverse direction) to any change in the bond price (yields fall as prices rise, and vice-versa). [1]

Equity dividend yields may be calculated both net and gross. Most people and organisations use the net method. The calculation for the yield is net dividend pence per share multiplied by 100 then divided by the share price. [2]