Is the dividend yield the same as the internal rate of return?

How are they different/similiar?

Internal rate of return is the same as money weighted return. (Think of this as the return that occurs when you invest money during a volatile month; the additional cash will either inflate or deflate the time weighted return). The dividend yield is the annual dividends per share/price per share. One can look at this similar to a coupon yield with a bond or an interest rate in a savings account. So they are not the same thing.

no div yld = div/stock price IRR = discount rate that makes the NPV zero. http://en.wikipedia.org/wiki/Internal_rate_of_return

if wikipedia says so, it must be right…

faraz70s Wrote: ------------------------------------------------------- > if wikipedia says so, it must be > right… I’d bet money that Wikipedia is more often accurate than the posts on AF. It’s not 2004 anymore.

Hockey Wrote: ------------------------------------------------------- > faraz70s Wrote: > -------------------------------------------------- > ----- > > if wikipedia says so, it must be > > right… > > > I’d bet money that Wikipedia is more often > accurate than the posts on AF. It’s not 2004 > anymore. i second that. most of wiki is legit. Faraz only has 22 posts under his belt, so we’ll have to excuse his naivete.

KJH is not completely wrong … IRR is used to calculate money-weighted return. So in a sense if we restrict our discussion to stock return, IRR will tell us the money-weighted return and div yield is like a bond yield for stocks. IRR (money-weighted return) will include the dividend yield too … But I disagree on " additional cash will inflate or deflate the time weighted return". But I must say, the question itself is not wise.