Monday, December 27, 2010

Income Investing

Income investing is an investment strategy whereby the investor seeks out companies that pay strong dividends and are expected to grow their dividends over time. A company can grow their dividends either through maintaining the dividend payout ratio and increasing earnings, or simply maintaining earnings and lifting the payout ratio. Most income investors will seek out the company in the first scenario - i.e. a company that can sustainably grow its dividends payments over time.

Synonyms: Income investor, Dividends, Dividend investor, Dividend investing

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