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. The stock may only be paying a 3 or 4 percent dividend yield, but if its annual yield is 8 percent, the dividend payment actually accounts for about half of the total return. Dividend yield is the amount of the dividend divided by the current stock price. Because bond funds are typically sold based on their yield, managers often buy super-high coupon bonds issued when … Thus, yield is a major decision-making tool used both by companies and investors. Note that we didn't write "it might be" too good to be true. Distribution yield is a measure of an ETF’s actual cash flow payments to investors, shown as a percentage of NAV. It will be taxed at the marginal tax rate and treated as income when in a taxable account. Distribution yield: 9.5%; Icahn Enterprises, LP (IEP, $73.85) is a unique business. A more striking example is Claymore's 1-5 Yr Laddered Corporate Bond ETF . In XSB's case the net yield is about 1.63 per cent annually - less than half of the net interest distribution payments. In general, 12-Month Yield gives a good picture of the current yield investors are receiving from their funds. Mutual fund yield is often quoted as a forward yield or a trailing twelve month yield. Dividend yield: 4.6%; ... DSL is a good way to get access. ... Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. The distribution is not subject to any preferential tax treatment. Foreign tax withholding applies which impacts the yield on the investment. It is too good … Chasing after exceptionally high distribution rates is one sure path to CEF investment disappointment. As pointed out, a high distribution rate can be accompanied by a declining share price return. 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