Income Intermediate: Investing for Income

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1.
Mutual funds that invest in bonds are income-oriented.
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True. Bonds are income-oriented; they are designed to produce periodic dividend payments.
2.
What does the income objective seek?
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Income for the present. Risk aversion is common among income investors, but their chief goal is the income.
3.
The stocks of dividend-paying companies are popular among investors who want _______.
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Income. Neither low taxes nor capital appreciation are typical features of income stocks.
4.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
5.
You can receive dividends directly from your investment.
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True. Your investment vehicle will send them directly to you after it receives them.