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All About Yield
Yield refers to the money that is returned to the holder of a security. It does not usually include price variations. Yield can be applied to different rates of return on stocks. These stocks could either be common, preferred or convertible. It also applies to fixed instruments which include notes, bills, strips and zero coupons. It may also be used for some insurance investment products like annuities, for example.
Yield can mean different things, however, depending on the situation. On one hand, it can mean the calculated rate of return given as a ratio or as an internal rate of return. It can refer to the owner’s total return or it can be used to just state a portion of the income. It can even exceed the income.
That is why yields should never be treated as if one type were equal to another. Here are some examples.
The nominal yield or coupon yield as it is sometimes referred to as is the total of coupons paid that is then divided by the Principal Value of the bond. This is done at the end of the fiscal year.
A current yield in reference to bonds, notes and bills is a payment or series of payments that are divided by the bond’s market price.
When discussing preferred shares, the current yield is also the payments divided by the market price. The dividend yield takes all of the monthly payments and divides the principal value of the preferred share.
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CDTV.net Stock Market News and Dividend Report for Thu May 27, 2010
Tiffany & Co. (NYSE: TIF) reported $0.50 per diluted share compared to $0.20 per diluted share, last year. analysts average $0.37. TIF beats by $0.13.
Net earnings were $64.4 million versus $24.3 million last year.
Tiffany & Co. operates jewelry stores and manufactures products through its subsidiary corporations.
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The Board of Directors of Apache Corporation (NYSE, Nasdaq: APA) has declared regular cash dividends of 15 cents per common share payable on Aug. 23, 2010, to stockholders of record on July 22, 2010.
Apache Corporation is an oil and gas exploration and production company.
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The Sigma-Aldrich Corporation (Nasdaq: SIAL) Board of Directors declared a quarterly cash dividend of $.16 per share. The dividend is payable on June 15, 2010 to shareholders of record on June 1, 2010.
Sigma-Aldrich is a leading Life Science and High Technology company.
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BlackRock, Inc. (NYSE: BLK) Board of Directors has declared a quarterly cash dividend of $1.00 per share of common stock, payable June 23, 2010 to shareholders of record at the close of business on June 7, 2010.
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide.
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