current income

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Current income

Regular series of cash flows that is routinely received from investments in the form of dividends, interest, and other income sources.

Current Income

Describing a portfolio containing primarily fixed-income securities and blue chip stocks that pay high dividends. A current income portfolio provides a steady income to the portfolio holder. As such, a portfolio does not hold high-growth or start up stocks; it follows a relatively conservative investment strategy. Most commonly, current income portfolios are held by retirees and others who seek a modest (but still substantial) return at little risk.

current income

Investment income earned from interest, dividends, rent, premiums from option writing, and similar sources as opposed to that derived from increases in asset value.
References in periodicals archive ?
Proposition 1: Sensitivity of consumption to current income will be positively related to a preference for more frequent monetary rewards.
As noted above, current income and permanent income consumers prefer pay systems that include frequent monetary payouts as well as high and rising pay, but only in the case of the current income consumer is spending tied directly to current income.
Sensitivity of consumption to current income may also act as a moderator of the relationship between incentive pay and performance.
Proposition 2: Sensitivity of consumption to current income will be positively related to a preference for incentive pay.
Proposition 3: Sensitivity of consumption to current income will moderate the relationship between incentive pay and performance; incentive pay will be more strongly related to performance among current income sensitive consumers than among permanent income consumers.
Within this perspective, the individual is anxious about the uncertainty surrounding future income and therefore will spend in proportion to current income.
Simplified, individuals may have three mental accounts--a current income or checking account (C), an asset or savings account (A), and a future income account (F).
Proposition 4: Sensitivity of consumption to current income will be negatively related to a preference for compensation systems that include uncertainty.
Proposition 5: Sensitivity of consumption to current income will be positively related to preferences for guaranteed income and systems that facilitate pre-commitment of current income.
In this article, we attempted to broaden the discussion of individual differences and pay preferences by taking some initial steps toward the development of the sensitivity of consumption to current income construct.
Characteristics on which regional cultures differ may nevertheless affect the range of differences in consumption sensitivity to current income within regional populations.
Beyond tests of the propositions outlined above, sensitivity of consumption to current income could be incorporated in several interesting streams of research.

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