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What Is Income Investing?

Income investing focuses on buying securities that provide a steady source of revenue. 

🤔 Understanding income investing

Rather than throwing money into equities that theoretically could increase in value—thereby increasing the cash-in value of your portfolio—income investing looks toward investments that provide immediate returns.  

This investment strategy can be broadly divided into two categories:

  1. Dividend investing. When a company pays investors some of its profits, this is called a dividend. While usually not a radical sum of money, dividends provide steady income in a volatile market.  
  2. Bond investing. Bonds are essentially a loan you grant to an institution or government in return for guaranteed interest and principal repayment. These securities pay out consistently, which makes them attractive to income investors.  

What this means for you

When it comes to investment strategies, every investor has their own preferred methods. From wearing a lucky hat and vetting every security for weeks to checking the news religiously and trading at gains of pennies on the dollar, there is no necessarily right or wrong way to approach the practice.

That said, income investing is one of the better strategies if you’re risk-averse, as it focuses on generating a stable, but potentially reduced, income.  

As with anything in the financial market, there is no guarantee that income investing will definitely produce returns equal to or greater than your initial investments. However, by staying away from volatile companies and electing for securities that provide quarterly payments, investors mitigate some of their risk.  

With Q.ai, you don’t have to worry so much about market volatility. Q.ai automatically allocates and rebalances your investments for you if it predicts underperformance. So you can sit back and relax while the AI does the work for you.

Disclosures

Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.

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