Investing for Income

One way to bolster fixed-income portfolios is to invest in income stocks with dividend yields that typically exceed those of guaranteed investments such as treasury securities or CDs. With that being said, there are two main types of income stock investments – utility stocks and preferred stocks. Utility stocks are common stocks that have historically remained relatively stable in price but pay competitive dividends. Preferred stocks are hybrid securities that act more like bonds than stocks that pay competitive yields. Income stocks have always been an attractive alternative for investors who do not want to risk their principal although when interest rates rise their values can decline. Be sure to call Michael L. Whitaker and Associates to discuss your options for investing for income.

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