By Douglas Cooper
Owning an income stock give you the best of both worlds, share growth and income. Not many stocks fall into this category but there are some industries that mostly do.
1. Oil Conglomerates - The big oil companies with their multi-billion dollar incomes have staying power, growth and most importantly big dividends for income. The economy of scale to start a oil company is large, this is exactly why there is little competition in this industry. How many people do you know that could raise billions of dollars to get one started?
2. Utility Companies - Water and electric won't be losing demand anytime soon. In fact they tend to grow slowly but steadily and increase their incomes accordingly. Dividends of 3-6% are not uncommon with utilities while some are even higher paying. The recent deregulation of many states has allowed many to increase their customers and incomes.
3. Real Estate - Commonly referred to as REITS (Real Estate Investment Trusts) these companies are required by law to pay out almost all of their income in the form of dividends which can range as high as 8%. Since real estate has gotten such a bad name the last few years many of these companies are also value plays. It would be a very good time to invest in these businesses since you have a good chance at both large share appreciation and income.
4. Chemical Companies - Big chemical companies have huge start up costs as well. Few new companies are ever formed and this give the few big conglomerates pricing power. Most of their chemicals are used in common household goods therefore the demand is always there fr their chemicals. Dividends therefore tend to be very large which is good for income.
Income stocks not only give you income through their dividends but potential share growth as well. There has never been a better time to buy these stocks since interest rates are at all time low.
source: http://www.mutualfundsforretirees.info
1. Oil Conglomerates - The big oil companies with their multi-billion dollar incomes have staying power, growth and most importantly big dividends for income. The economy of scale to start a oil company is large, this is exactly why there is little competition in this industry. How many people do you know that could raise billions of dollars to get one started?
2. Utility Companies - Water and electric won't be losing demand anytime soon. In fact they tend to grow slowly but steadily and increase their incomes accordingly. Dividends of 3-6% are not uncommon with utilities while some are even higher paying. The recent deregulation of many states has allowed many to increase their customers and incomes.
3. Real Estate - Commonly referred to as REITS (Real Estate Investment Trusts) these companies are required by law to pay out almost all of their income in the form of dividends which can range as high as 8%. Since real estate has gotten such a bad name the last few years many of these companies are also value plays. It would be a very good time to invest in these businesses since you have a good chance at both large share appreciation and income.
4. Chemical Companies - Big chemical companies have huge start up costs as well. Few new companies are ever formed and this give the few big conglomerates pricing power. Most of their chemicals are used in common household goods therefore the demand is always there fr their chemicals. Dividends therefore tend to be very large which is good for income.
Income stocks not only give you income through their dividends but potential share growth as well. There has never been a better time to buy these stocks since interest rates are at all time low.
source: http://www.mutualfundsforretirees.info
