Because bond funds are typically sold based on their yield, managers often buy super-high coupon bonds issued when … (SEC Yield, in contrast, is a good measure of the income return currently priced into a fund's bonds.) In general, 12-Month Yield gives a good picture of the current yield investors are receiving from their funds. It is too good … Thus, yield is a major decision-making tool used both by companies and investors. Be it high or low, a company's dividend yield is a key component of its total return. Note that we didn't write "it might be" too good to be true. Dividend yield: 4.6%; ... DSL is a good way to get access. If a CEF's distribution rate looks too good to be true, it is. Typically, distribution yields are based on the sum of all distributions paid to investors over the past 12 months, divided by the ETF’s most recent month end NAV. In XSB's case the net yield is about 1.63 per cent annually - less than half of the net interest distribution payments. Distribution yield is a measure of an ETF’s actual cash flow payments to investors, shown as a percentage of NAV. A more striking example is Claymore's 1-5 Yr Laddered Corporate Bond ETF . Foreign tax withholding applies which impacts the yield on the investment. Dividend yield is a stock's annual dividend payments to shareholders expressed as a percentage of the stock's current price. As pointed out, a high distribution rate can be accompanied by a declining share price return. Mutual fund yield is often quoted as a forward yield or a trailing twelve month yield. Chasing after exceptionally high distribution rates is one sure path to CEF investment disappointment. Dividend yield is the amount of the dividend divided by the current stock price. It will be taxed at the marginal tax rate and treated as income when in a taxable account. The distribution is not subject to any preferential tax treatment. ... 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