Equity Income


DEFINITION of 'Equity Income'

1. Dividend income that is earned through an investment in stocks (equity).

2. A type of mutual fund that invests in high-quality companies with a reliable history of dividend payments and growth in the dividend rate.

BREAKING DOWN 'Equity Income'

1. Dividend paying stocks are usually those of large, well-established companies that are favored by moderately conservative investors and/or those seeking current income.

2. In the mutual fund context, the investment objective will be a combination of generating both moderate current dividend income and moderate capital appreciation.

  1. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
  2. Equity

    Equity is the value of an asset less the value of all liabilities ...
  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Income

    Money that an individual or business receives in exchange for ...
  5. Capital Appreciation

    A rise in the value of an asset based on a rise in market price. ...
  6. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
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