Chapter 9
Investing for Income and Cash Flow
IN THIS CHAPTER
Familiarizing yourself with income stock fundamentals
Selecting income stocks with a few criteria in mind
Getting income from utilities, REITs, and BDCs
Earning income from writing call and put options
Stocks are well known for their ability to appreciate (for capital gains potential), but not enough credit is given regarding stocks’ ability to boost your income and cash flow. Given that income will be a primary concern for many in the coming months and years (especially baby boomers and others concerned with retirement, pension issues, and so on), I consider this to be an important chapter.
The first income feature is the obvious — dividends! I love dividends, and they have excellent features that make them very attractive, such as their ability to meet or exceed the rate of inflation and the fact that they are subject to lower taxes than, say, regular taxable interest or wages. Dividend-paying stocks (also called income stocks) deserve a spot in a variety of portfolios, especially those of investors at or near retirement. ...
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