Income Stock

Glossary

Banking

Income Stock

Investors have a number of strategies when it comes to equity selection. Income stocks are common shares that pay out high dividend yields. That is the source of returns for investors. By contrast, growth stocks, as the name suggests, rise in price quickly but tend to pay no dividends as cash is reinvested to drive further growth. Returns here are generated from price appreciation. Value stocks are those perceived to be undervalued. Returns are created by the share prices of these generally financially stable companies playing catch-up.

logo-animationlogo-animationlogo-animation

Related terms