Strategy Intermediate: Investing for Income

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1.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
2.
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.
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.
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.
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.