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Yield

May 15, 2022 • 2 min read
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In most cases, yield refers to the capital income an investor receives from an investment, either being stocks or shares.

Investors tend to purchase assets or stocks that could potentially offer them a high yield, which would in return result in trader money. The investor normally chooses a range of stocks or investment opportunities based on varying factors and risks before completing a purchase.

Higher-yielding stocks are more lucrative and sometimes the most preferred option on the market.

In investing, the yield is also referred to as the physical dollar amount of dividends that are paid out to investors by a publicly-traded company.

How to Calculate Yield

Yield can be calculated in different ways, but the most common formula is:

Income / Investment Value (x 100 for a percentage figure)

Types of Yield

  • Dividend Yield: The dividend yield refers to the company’s annual dividend payouts against its share price.

For example, LucasBlue stocks are trading at $10.50 per share, and pay a dividend of $0.55. The dividend yield would then be, $0.55 / $10.50 = 0.052 x 100 = 5.2%.

  • Stock Yield: Some investors will oftentimes invest in value growth stocks that have a larger potential to grow in the future. Simply, the stock yield determines the growth of an investment.

Stock return is the simplest way to determine the yield. For example, if LucasBlue stock prices grow from $10.50 to $12.75 per share, the stock yield would then be $2.25 per share or $12.75 – $10.50 = $2.25.

The second method to determine stock yield is with a rate of return. The formula works as follows:

Final Investment Value – Starting Investment Value / Starting Value x 100

For example, the starting investment value was $3,500 and the final investment value is $4,600. The rate of return would then be calculated as, $4,600 – $3,500 / $3,500 x 100 = 31.4%.

Bond Yield: The final is bond yield, is calculate as follows:

Interest on bond / Chosen Price x 100

Let’s say for example, a bond with a value of $6,000 pays an annual interest of $130, the bond yield would be 2.1% or $130 / $6,000 x 100 = 0.021 or 2.1%

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We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

9 Statistics as of the most recent month end.

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Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

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