Income Investing Strategy

Income investing is a strategy focused on building a portfolio that generates regular, predictable cash flow through dividends, interest, or other distributions. Investors using this approach typically invest in dividend-paying stocks, bonds, REITs, preferred shares, or income-focused ETFs, prioritizing steady income over capital appreciation.

It’s especially appealing to retirees or those seeking financial independence, as the income can help cover living expenses without needing to sell investments. While income investing can provide stability, it may also come with interest rate sensitivity and slower growth compared to more aggressive strategies. Careful diversification is key to managing risk and ensuring consistent returns.