In general, 12-Month Yield gives a good picture of the current yield investors are receiving from their funds. As pointed out, a high distribution rate can be accompanied by a declining share price return. Dividend yield is a stock's annual dividend payments to shareholders expressed as a percentage of the stock's current price. Thus, yield is a major decision-making tool used both by companies and investors. Mutual fund yield is often quoted as a forward yield or a trailing twelve month yield. 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. Dividend yield: 4.6%; ... DSL is a good way to get access. 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. Note that we didn't write "it might be" too good to be true. In XSB's case the net yield is about 1.63 per cent annually - less than half of the net interest distribution payments. ... Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. The simplistic answer to the question of what constitutes a good dividend yield is “the higher the better.” Obviously, a 10 percent yield is always better than a 1 percent yield, but there is lot more that goes into a “good” dividend yield … Foreign tax withholding applies which impacts the yield on the investment. If a CEF's distribution rate looks too good to be true, it is. It will be taxed at the marginal tax rate and treated as income when in a taxable account. Chasing after exceptionally high distribution rates is one sure path to CEF investment disappointment. It is too good … Distribution yield is a measure of an ETF’s actual cash flow payments to investors, shown as a percentage of NAV. 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