Dividends are distributions from companies to shareholders. Although some companies pay dividends in shares of their stock, traditional dividends are distributed in cash, often quarterly. For some ...

Bonds can provide passive income, some of which may be tax-free if you’re investing in municipal bonds. The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free bond ...

A yield is a percentage measure of income you can earn from your investments in a given time. If you're a passive-income investor, you may live entirely or partially on your investment's proceeds or ...

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Dividend yield shows how much a ...

Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...

An annual percentage yield, or APY, is the rate of return on money in a bank account. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you ...

One of the most popular measures of bond yield is yield to maturity (YTM). Also called book yield or redemption yield, it’s the estimated rate of return an investor can expect from a bond when held ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Investors demand higher returns from illiquid assets due to greater selling difficulty. Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free ...

Yield maintenance is a prepayment penalty designed to safeguard lenders against losing interest income when a borrower decides to settle a loan ahead of schedule. Yield maintenance compensates for ...