Income Intermediate: Investing for Income

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1.
Which of the following is most likely to determine whether a stock is income-oriented?
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A past history of dividend payments. This is more likely than any of the other choices to be true of an income-oriented stock.
2.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
3.
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.
4.
By liquidating _______ in a mutual fund, you can receive income from it.
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Shares. Bonds and taxes cannot be liquidated in mutual funds.
5.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.