Income investing is all about creating a steady stream of money from your investments. Instead of focusing on how much a stock or bond might grow in value, income investors look for investments that pay regular cash, like dividends or interest. This strategy is great for people who want to earn money now, not just in the future.
Common income investments include dividend-paying stocks, bonds, real estate, and other assets that provide regular payouts. For example, some companies share part of their profits with shareholders through dividends, which are usually paid every quarter. Bonds pay interest at set times, and rental properties provide monthly income.
One of the biggest advantages of income investing is stability. While growth investing can be exciting, income investing is often less risky and provides more predictable returns. That makes it popular with retirees or anyone who needs extra cash flow.
Still, income investing isn’t completely risk-free. A company might cut its dividend, or a bond might lose value if interest rates change. That’s why it’s important to research your investments and spread your money across different types to lower your risk and keep the income flowing.
Let me know when you’re ready for the next set—Lesson 46 onward. I’ll continue in the same detailed style.
