Annualized Holding Period Yield

The Annualized Holding Period Yield calculator computes the yield based on total return, original investment and the period investment is held.

INSTRUCTIONS: Choose units and enter the following:

• (OI) Original Investment
• (TR) Total Return
• (N) Period of Investment

Annualized Holding Period Yield (AHPY): The calculator returns the yield in percent per year. 

The Math / Science

The Annualized Holding Period Yield (AHPY) equation compute a yield that takes into account the total return, the original investment, and the time the investment is held.

EXAMPLE

An investor bought a stock two years ago at $680 and received a total of $117 in dividends over the two year holding period. What AHPY is he expecting?

AHPY = ($117/680)*1/ 2 = 0.086 which translates to 8.6% per year

APPLICATION

An increase in AHPY is a healthy sign of growth. This value is often used by investors to inform decision-making in terms of the best time to sell a stock.