Definition of income investing

TradersIncome investing in its broadest sense refers to any form of investment which can generate a cash income in the form of dividends, interest or capital gains. Income investing can therefore refer to a strategy of buying shares in a company that pays dividends. It can also, when the term is used broadly, encompass investments in bonds or even property. Usually, however, the term is used to refer to equity income investing, and would often encompass the practice of re-investing dividend income.

 

income investing in the news

In January 2013, investors were reported to be pouring cash into UK equity income funds with an estimated £220m flowing into the sector in November 2012 alone, representing the largest inflows in five years.

In June 2013 an asset manager warned that too many investors were chasing companies viewed as pure income plays, and that some sectors had reached full valuation.