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.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
3.
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.
4.
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.
5.
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.