Income strategy is an approach to stock investing that relies on building a portfolio of dividend paying stocks and/or bonds. An income strategy is generally a low risk and conservative strategy. A portfolio that includes dividend paying stocks can be a good way of diversifying risk if you have a portfolio dominated by bonds. Dividend paying stocks may not track so closely changes in government interest rates as do bonds. Large stable companies such as utilities or large manufacturers with much long term capital assets are often stable dividend paying stocks.
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