Income StocksIncome stocks are stocks that traditionally pay high dividends. This investment vehicle is for conservative investors who want the steady investment income provided by these securities. The dividends are normally paid out once a quarter but can be paid out at different periods depending on the company. They can also be paid out in a few different forms, cash being the most common. Normally the dividends are paid out based on a percentage of the stock price. If a stock is trading at $100 and pays out $5 annually on dividends that stock has a 5% dividend. One positive thing about dividends is that they are taxed at a low rate. The maximum tax on dividends is 15%, much lower they other income taxes. Conservative investors will buy income stocks because they can make money in two different ways. They make you money by paying out consistently high dividends. They also make you money by the simple appreciation of the stock. Have A Great Story About This Topic?Do you have a great story about this? Share it!
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