IN PLAIN ENGLISH
The income return on what you actually paid, rather than on today's market value. Because it uses your cost, it rises over time as holdings raise their dividends.
FULL DEFINITION
Projected annual dividend income as a percentage of the remaining cost basis — a portfolio-level yield on cost.
EXAMPLE
Annual Dividend = £245 on Total Cost of £5,000. Annual Yield = 245 ÷ 5,000 × 100 = 4.90%.
HOW IT'S CALCULATED
Annual Yield = Annual Dividend ÷ Total Cost × 100. It uses cost, not market value, so it is a yield on cost. Returns 0 when Total Cost is zero.
Educational content only. It is not personal financial advice.