Strategy Intermediate: Investing for Income

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1.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
2.
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.
3.
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.
4.
All but which of the following are income-oriented investments?
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None of the above. All of these investment choices are income-oriented.
5.
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.