Series 6: 7.2.2.2.2. Income And Capital Appreciation Strategies

7.2.2.2.2. Income and Capital Appreciation Strategies

While most people think of successful stock investing in terms of capital appreciation, stock portfolios can be managed for income as well. When a stock portfolio is managed for income, higher dividend common and preferred stocks are purchased in the hopes that this income will contribute to the overall portfolio’s return. For example, if a target rate of return for a portfolio is 8%, ensuring that all the stocks in the