How is "yield" typically expressed?

Yield is typically expressed as an annual percentage to provide a standardized way of comparing the income produced by an investment relative to its cost or current market value. This annualized figure allows investors to assess the expected return from their investments over a year, facilitating comparisons among different types of investments or assets.

For example, if an investor receives interest or dividends from an investment, yield calculates the income generated as a percentage of the investment's value. By expressing yield as an annual percentage, it becomes easier for investors to evaluate the profitability and efficiency of different investment opportunities within the same timeframe.

Other expressions, like a fixed dollar amount or a profit margin, do not provide a percentage that can be universally applied across diverse investments. Monthly rates can offer insight into short-term performance, but they lack the comparability and context that annual percentages provide for making informed long-term investment decisions.