The term high yield describes investments with a high rate of return. A high yield security has a very low rating, because they are bonds that have a high probability of default, and consequently offer high interest rates.
Following the same logic, a stock can offer a high yield dividend to compensate for relatively low capital expectations, as in the case of a large company operating in a mature industry that is no longer growing.
High Yield, ultimi articoli su Money.it International
Financial Times
7 December 2023 - 11:02
Bond issuance by US and European firms surges as market becomes more confident of interest rate cuts next year.
Money.it
21 June 2023 - 11:42
High-yield bonds offer yields close to 10-year highs but carry a greater risk of default than investment-grade bonds. Does it make sense to invest?
Lorenzo Bagnato
22 May 2023 - 18:05
If the US was to default on its debt, the consequences on the world economy would be unimaginable. Bitcoin holders, however, might actually enjoy it.
Money.it
10 October 2022 - 13:01
What is meant by dividend yield? A practical guide to discover its meaning and use and why it is important to know how it is calculated and how it operates on the markets.
