Income investing is a strategy focused on generating regular income from investments, rather than seeking capital gains. Investors typically purchase assets like dividend-paying stocks, bonds, or real estate investment trusts (REITs) that provide consistent cash flow. This approach is popular among retirees or those seeking steady income.
The primary goal of income investing is to create a reliable stream of income, which can be reinvested or used for living expenses. Investors often evaluate the yield, or the income generated relative to the investment's cost, to assess the attractiveness of different income-generating assets.