Lux Investing
High yield/low yield?
hey guys, im new to investing, what exactly those word yield means. High yielding stock, low yielding stock. what do the mean? thanks in advance for the help
Public Comments
- high yield means you could earn a lot on an investment. low yield means you earn a little. a common misconception is that a higher yield is always better. but you also need to take into account the risk youre taking. the reverse is also true you see; high yield stocks fall more on a downturn than low yield stocks do.
- Yield are normally calculate based on the dividend a company is paying. For example, AT&T is high yeild coz it is paying over 6% in dividend based on its current market price where as APPLE do not pay any dividend (currently). Your portfolio should consists of both High yield/low yield stock. If you are new ETF or Mutual Funds are better for now.
