Current Yield is a term that is often used to describe the return on investment (ROI) for stocks, bonds, and other types of investments. It is wise of investors to be aware of the Current Yield for each of their individual investments as a way to reach short term and long term investment goals. By using this variable, real estate investors can determine the annual yield provided by each of their investment properties. If the investment property does not meet an investor’s required yield, the investor may choose to sell the property to avoid any losses in the future. Although this metric may be very helpful, investors should rely on more information than just the Current Yield to evaluate their investment’s potential earnings. To illustrate the price of a bond, the Current Yield ratio can be found by dividing the annual cash flow by the market price of the investment, expressed as a percentage. An investor may purchase a property in an area that is not considered to be desirable, but now the area is in the process of a major renovation. In the future, the city adds a shopping center and civic center to further enhance the community. The property may be a good investment in the future, even though the Current Yield does not show it is a good investment presently.