Yield is the income an investment generates, expressed as a percentage of its price. It is a way of comparing the cash an asset throws off — a stock's dividends, a bond's interest, a coin's staking rewards — on a like-for-like basis regardless of the amount invested.
A higher yield is not automatically better. Yield generally compensates for risk, so an unusually high figure often means the market sees a greater chance the income will be cut or the capital lost. Chasing yield without asking why it is high is a common and costly mistake.
Yield also says nothing about whether the underlying asset will hold its value. A 10% staking yield is cold comfort if the coin falls 50%, and a high dividend yield can evaporate if the company stops paying. Total return — income plus price change — is what ultimately matters.
Worked example
A coin offering a 6% staking yield still leaves you exposed to its price; that reward means little if the coin falls 30%.
This definition is general education, not investment advice. Markets — especially crypto — are volatile and you can lose money. Please read our disclaimer and see our methodology.
Related terms
Frequently asked questions
What does Yield mean?
The income an investment produces, expressed as a percentage of its price — for example a dividend yield on a stock or staking yield on a coin.
Is Yield a crypto or a stock-market term?
It applies across both cryptocurrency and traditional stock markets.
Is this Yield definition financial advice?
No. The Market Capitalize glossary is educational — it explains terms and concepts, never a recommendation to buy or sell. See our disclaimer.