Year-end dividend

A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits.

Yield

The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.

Yield advantage

The advantage gained by purchasing convertible securities instead of common stock, which equals the difference between the rates of return of the convertible security and the common shares.

Yield curve

The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. The yield curve can accurately forecast the turning points of the business cycle.