Equity Income

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Income

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

    A rise in the value of an asset based on a rise in market price. ...
  3. Dividend

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

    Legal tender or coins that can be used in exchange goods, debt, ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
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    1. A stock or any other security representing an ownership interest. ...
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