What Is Income Investing

This lesson focuses on income investing, a technique that involves purchasing stable stocks and bonds that pay dividends and coupons. This approach provides a source of income for retirement and helps avoid depleting savings. The lesson covers techniques for picking stocks that are income investing stocks, such as investing in stable companies with a low debt to equity ratio. Companies that pay dividends are more reliable as they provide liquidity, which allows investors to continuously invest in undervalued assets. The lesson concludes by recommending finding companies that pay about one-third of their earnings through dividends and investing the other two-thirds in the book value of the business.