Dictionary of Finance and Investment Terms: income stock
income stock
stock paying high and regular dividends to shareholders. Some industries known for income stocks include gas, electric, and telephone utilities; real estate investment trusts; banks; and insurance companies. High-quality income stocks have established a long history of paying dividends, and in many cases have a track record of regularly increasing dividends. All dividends paid to shareholders of income stocks are taxable in the year received unless the stock is held in a tax-deferred account such as an IRA or Keogh plan.
