Next video:
Loading the player...

Income investing is a term used to describe a style of stock-picking focusing on securities that generate a stream of cash – like traditional bonds, dividend-paying stocks and diversified investment structures that basket income-producing equities like mutual funds and ETFs.

Income investing is a strategy commonly used by risk-averse investors who gravitate toward investments with low to zero volatility or those associated with reputable companies. Its contrasting strategy, growth investing, is often chosen by investors with more tolerance for risk and a willingness to invest in less-established companies with stock prices that swing more than blue chips, with the hope that the return will be greater than the industry average. For most income investors, this strategy doesn’t fit in with their investing objectives.
 

  1. No results found.
Related Articles
  1. Investing

    5 Reasons to Choose Mutual Funds over ETFs

    Discover five reasons to choose mutual funds over ETFs, such as the wide variety of funds available, the higher service quality and the lack of commission fees.
  2. Investing

    A Fund's Investment Objective

    Learn to evaluate a fund's investment objective, or "style".
  3. Retirement

    How Retirees Can Invest and Still Minimize Risk

    A retirement portfolio should focus on absolute return strategies to minimize risk.
  4. Retirement

    The Best Way To Build Your Retirement Portfolio

    Retirement means changing your investment goals from growing assets to generating income. Here's how.
  5. Investing

    When Is the Right Time to Change From Mutual Funds to ETFs

    Find out how to determine when it's the right time for you to switch from mutual funds to ETFs, including the benefits of ETFs and who they are best for.
  6. Investing

    5 Income Strategies For Your Portfolio

    Discover five moves you can make to start generating regular income from your investment portfolio with income-focused investments.
  7. Investing

    Bond Funds Boost Income, Reduce Risk

    These funds can provide stable returns for those who depend on their investment income.
Hot Definitions
  1. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  2. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  3. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  4. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center