Information
> Financial
Terms > This page
Income Return
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
The
money accruing or earned upon an investment per year.
The
income return upon stock is found by dividing the amount of annual dividends
by the purchase price; thus, if U.S. Steel common is purchased at 30 and
pays $1.60 in annual dividends, the income return is 5.33%.
The income return on bonds may mean two things – the annual return
upon purchase price or the yield if held to maturity.
The former is ascertained in the same way as the income return
from stock, i.e., by dividing the annual amount of interest by the purchase
price. For the return if
held to maturity
See
YIELD
Back to Information
|