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Income stock

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Income stock
Common stock with a high dividend yield and few profitable investment opportunities.

income stock
A stock that has a relatively high dividend yield. The stock's issuer is typically a firm having stable earnings and dividends and operating in a mature industry. The price of an income stock is heavily influenced by changes in interest rates.

Income stock. Stock that pays income in the form of regular dividends over an extended period is often described as income stock.

The advantage of owning income stock is that it can supplement your budget or provide new capital to invest. Unless you own the stock in a tax-deferred or tax-free account, you'll owe income tax each year on the dividends you receive.

But dividends on qualifying stock, including most US stock and some international stock, are usually taxed at your lower long-term capital gains rate. Income stock is an important component of most equity income funds and growth and income funds.



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So if you're looking for an income stock there's better value out there.
As share prices have fallen this year, the dividend yield on some of Britain's most reliable income stocks has risen to historically high levels.
So, recognising that income stocks usually outperform in a downturn but at the same time acknowledging that many companies will either cut their dividends or simply forego them altogether, we have screened across our UK and European analyst portfolios and identified a number of companies where we believe the likelihood of a dividend cut is minimal.
 
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