Yield represents the income generated by an investment relative to its current value or purchase price. It is usually expressed as a percentage and is commonly associated with dividends, interest payments, or rental income.

For example, a bond paying €50 annually on an investment worth €1,000 has a yield of 5%. Investors often use yield to evaluate income-producing assets.

While higher yields can be attractive, they may also indicate higher risk, making it important to consider the overall quality of the investment.