Strategy Intermediate: Investing for Income

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1.
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.
2.
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.
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.
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.
5.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.