Indicated Yield

Indicated yield is an estimate of the annualised income return that an investor can expect from a security — typically a stock or bond — based on the most recent or expected dividend or interest payment annualised and divided by the current market price. For dividend-paying stocks, the indicated yield is calculated as the most recently declared (or expected next) annual dividend per share divided by the current share price — providing a forward-looking income yield that adjusts for current price levels. For bonds, indicated yield is the coupon rate expressed as a percentage of the current market price (current yield). Indicated yield differs from trailing dividend yield (based on dividends paid in the last 12 months) and yield to maturity (which accounts for capital gain/loss to maturity for bonds). For income-focused investors on Ventura Securities building dividend portfolios or evaluating fixed income securities, indicated yield provides a useful, current snapshot of expected income return and is an important input for comparing income-generating investments across asset classes on a consistent basis.