Strategy Intermediate: Investing for Income

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1.
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.
2.
Mutual funds pay dividends when their holdings pay dividends.
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True. Mutual funds are made of individual holdings. Their dividends are possible only when their holdings pay dividends.
3.
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.
4.
As an investor, you can receive income from your investments in all but which of the following ways?
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Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.
5.
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.