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Dice Financial Services Group
1716 N. Sanborn Blvd, PO Box 790
Mitchell, SD 57301
Phone: 605-996-7171
Toll Free: 800-658-3603
Website: www.dicefinancial.com
January/February 2023
Investing for Income
Income investing involves building a portfolio that produces enough profit to pay out a regular income. The success of this strategy depends on selecting investments that are likely to provide a steady stream of cash. Now that interest rates have increased, the yields on fixed income investments are climbing, too.
What Types of Investments?
An income portfolio generally consists of investments having low volatility and a long track record of paying dividends or interest. It typically includes:- Dividend-paying stocks (or mutual funds*), which are stocks of major companies with a history of maintaining or increasing dividends
- ETFs (exchange-traded funds)
- Bonds and other fixed income securities
- Cash equivalent investments, such as money market accounts and Treasury bills
Not Without Risk
All investing is subject to risk, including the possible loss of the money you invest. While a conservative portfolio designed to produce income is generally less volatile, it isn’t risk free. Keep the following risks in mind.- Inflation can reduce the purchasing power of returns generated by income-producing investments.
- Companies may cut, or even eliminate, dividend payments if their profits decline significantly. While it’s important to invest in companies with a long history of solid performance, it may not be enough to keep dividends from being affected.
- Not reinvesting returns into the stock market means you’re missing out on compounding, which allows your original investment to grow over time. The longer your investing time frame, the more your savings may benefit from compounding.
Work with a Professional
Beginning investors should keep in mind that it will take many years to build enough wealth to generate a consistent and sufficient income. For income investing to be successful, it should be part of a long-term strategy that takes your goals and risk tolerance into account. Your financial professional can help you design a portfolio that meets your goals.*Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. Read the prospectus carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.
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Securities and investment advisory services offered through Royal Alliance Associates, Inc. [ RAA], Member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. Insurance Services offered through Dice Financial Services Group.
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are registered representatives of and offer securities products and services through RAA. In this regard, this communication is strictly intended for individuals residing in the states of AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, MN, MO, MT, NC, ND, NE, NY, OK, OR, SC, TX, UT, VA, WA, WI, and WY. No offers may be made or accepted from any resident outside the specific states referenced.
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are also separately registered as investment advisor representatives under Dice Financial Investment Advisory, a registered investment adviser, offering advisory services in the state of SD.
Thomas Dice offers additional investment advisory services through RAA.
Fixed and/or Traditional Insurance Services offered through Dice Financial Services Group.
Listed entities are not affiliated.
The broker-dealer [BD], investment advisor, BD agent or investment advisory [IA] rep in question may only transact business in a state if first registered, excluded or exempted from state broker-dealer, investment advisor, BD agent or IA rep registration requirements, as may be; and follow-up, individualized responses to persons in a state by such broker dealer, investment adviser, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, as may be, will not be made absent compliance with state broker-dealer, investment adviser, BD agent or IA rep registration requirements, or an applicable exemption or exclusion.
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