Strategy 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.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
3.
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.
4.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
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.