Income stock

Income stock

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

Income Stock

A stock that pays a high dividend compared to other stocks. Income stocks are typically issued by blue chip or other well-established companies that have stable earnings and a solid financial outlook. They are able to pay the high dividends because there is little reason to reinvest earnings in a new product. The price of an income stock is largely dependent on interest rates; when interest rates increase, income stocks decrease, and vice versa.

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.

Mentioned in ?
References in periodicals archive ?
New Orders, Investment Goods Yield Spread cumulated, 10 year minus 3 month Change in Inventories Gross Enterprise and Property Income Stock Prices New Orders, Residential Construction Consumer Confidence Index
CA Technologies is an attractive income stock with 4 percent dividend yield.
Age Concern (0208 765 7200) publishes a freeIN 2001 my wife and I invested pounds 20,000 in a high income stock market bond.
Alltel is the rare combination of an income stock and a growth stock.
The board now includes outside directors in a deferred income stock ownership plan.
buy and sell stocks and securities, switch from income stock to growth stock, etc.
Global stock funds and GNMA bond funds had the most volatile net flows, while income stock funds had the most stable flows.
An income stock is one you buy mostly for the dividend it pays.
2874 shares of Realty Income stock for each share of ARCT common stock owned, and ARCT shareholders will receive a one-time cash payment of $0.
5 percent dividend yield and thus is an attractive income stock.
Assuming the plan goes through they will end up with an equal number of shares in BT Group (a steady income stock owning the UK network and European interests) and mmO2 (the mobile group which will be a low yield growth stock).