Income & Dividends

Annuitization is the act of triggering a series of payments, usually from an annuity.
A bank deposit agreement, also called a Bank Investment Contract (BIC), is an agreement between a bank and an investor where the bank provides a guaranteed rate of return in exchange for keeping a deposit
A bank investment contract (BIC), also sometimes called a Bank Deposit Agreement, is an agreement between a bank and an investor whereby the bank provides a guaranteed rate of return in exchange for
A blue-chip stock is a stock of an established company that has consistently shown qualities like generating consistent earnings, paying generous dividends or increasing revenue.
A brokered certificate of deposit (a brokered CD) is a CD sold by a brokerage firm.
/*-->*/ A callable certificate of deposit (callable CD) is a time deposit with a bank or financial institution. But unlike other CDs, callable CDs can be redeemed by the issuer before the maturity
A cash dividend is a cash payment made to the shareholders of a corporation.
A CD ladder is an investing strategy whereby the investor staggers the maturity of ("ladders") the certificates of deposit in his portfolio so that the proceeds can be reinvested at regular intervals.
A certificate of deposit (CD) is a relatively low-risk debt instrument purchased directly through a commercial bank or savings and loan institution.
A cumulative dividend is a dividend, usually on preferred shares, that must be paid before any other dividends on any of the issuer's other securities. Preferred stock that does not carry a cumulative
Daily factor is the amount of yield earned in a day.
In the income investing world, a declaration date is the date on which a company announces an upcoming dividend payment, usually by issuing a press release a few weeks before the dividend is actually paid
A dedicated portfolio is a passively managed portfolio whose cash flows are designed to match the cash flows needed to fulfill a future obligation.
Dividends are payments from corporate earnings to company shareholders. Dividends are one way for you to receive a return from owned shares. You can think of them as a reward for investing your money with
The term "dividend achievers" is used to describe an elite group of companies that have improved their annual regular dividends for at least 10 consecutive years and meet certain liquidity requirements. 
The term "dividend aristocrats" is used to describe Standard & Poor's (S&P) 500® Index companies that have consistently improved their dividend rates every year for at least 25 consecutive years.
The dividend capture strategy is the act of purchasing a security for its dividend, capturing the dividend, and then selling the security to buy another about to pay a dividend. By doing this, investors
A dividend declaration date is the date on which a company announces an upcoming dividend payment, usually by issuing a press release a few weeks before the dividend is actually paid.
The dividend payable date is the date on which a company pays a dividend to its shareholders of record.
A dividend record date is the date on which the company finalizes the list of investors who qualify as "shareholders of record." Investors listed as shareholders of record will receive the firm's dividend
A dividend reinvestment plan (DRIP) is an arrangement offered by companies to investors wishing to receive additional shares of company stock in lieu of cash dividend payments.
Dividend yield is the annual dividend payment shareholders receive from a particular stock shown as a percentage of the stock's price. (Dividends are corporate earnings distributed to company shareholders
Earning assets are assets that generate income like interest or dividends.
The effective annual interest rate is the rate of interest an investor earns in a year after accounting for the effects of compounding. 
An enhanced income security (EIS), also known as an income deposit security (IDS), is an exchange-traded security composed of both an issuer's common shares and its subordinated notes.
An equity income fund is a mutual fund composed largely of dividend-paying stocks.
To determine whether you are entitled to the next cash or stock dividend, you need to know two important dates: the record date and the ex-dividend date (also referred to as “ex-date”). This is the day
An extra dividend, also known as a special dividend, is a one-time distribution of corporate earnings to company shareholders, typically derived from exceptional performance during a given quarter or
A fixed annuity offers a fixed rate of return, and all its future payments are equal amounts.
A fixed income security is an investment that pays regular income in the form of a coupon payment, interest payment or preferred dividend.
Fixed-rate capital securities are fixed income securities that have features of both corporate bonds and preferred stock.
A forward dividend yield is a stock's annualized dividend based on its latest declared dividend payment.
The Gordon Growth Model, also known as a version of the dividend discount model (DDM), is a method for calculating the intrinsic value of a stock, exclusive of current market conditions. The model equates
Gross interest is the amount of interest an account or investment earns before deducting taxes, fees or other charges. It is expressed as a percentage.
A guaranteed death benefit is a portion of an annuity that allows the investor's beneficiaries to receive a minimum amount of death benefits.  
A guaranteed investment contract (GIC) is an agreement between a contract purchaser and an insurance company whereby the insurance company provides a guaranteed rate of return in exchange for keeping a
An illegal dividend is a dividend declared in violation of a company's charter or state laws.  
Immediate payment annuities (also called single-premium immediate annuities or SPIAs) are annuities that begin making payments to the owner immediately (within one year of purchase).
Income funds are mutual funds, ETFs or any other type of fund that seek to generate an income stream for shareholders by investing in securities that offer dividends or interest payments. The funds can
An income stock is a stock in which a taxable payment is declared by a company's board of directors and is given to the shareholders from the current or retained earnings that occur, usually on a
An indexed annuity is an annuity that pays a rate of return corresponding to a particular index, such as the S&P 500 Index.
Indicated yield is the dividend yield on a stock if the most recent dividend is annualized.
A managed distribution policy is an issuer's commitment to make a fixed periodic dividend payment. This means investors can buy shares of a security with the confidence that they will receive a reliable
Mortgage-backed securities (MBS) are securities that represent an interest in a pool of mortgage loans.
Net interest margin securities (NIMS) provide investors with cash flows from securitized mortgages. The first NIMS came into the marketplace in the mid-1990s.
An ordinary dividend is a dividend that is not eligible for capital gains tax.
Pasternak's normalized net asset value (NNAV) allows investors to compare master limited partnership (MLP) funds with each other and with non-MLP closed-end funds.
A qualified dividend is a dividend eligible to incur capital gains tax.
A qualified pre-retirement survivor annuity (QPSA) is a company-sponsored death benefit that provides the employee's surviving spouse with an annuity payment should the employee die before receiving
In stock trading, a rebate occurs when a short seller has taken a short position in a stock that then pays a dividend before the settlement date. The rebate is the dividend that the short seller is
The record date is the date used to determine the holders of a security who are entitled to receive a dividend or distribution.
A special dividend, also known as an extra dividend, is a one-time distribution of corporate earnings to company shareholders, which usually stem from exceptional profits during a given quarter or period.
Dividends are a distribution of corporate earnings to shareholders and usually take place in one of two forms -- cash or stock. A stock dividend is the latter of these two kinds of dividends. Each
A variable annuity is a contract sold by an insurance company. The contract provides the holder with future payments based on the performance of the contract's underlying securities. The insurer
A variable-rate certificate of deposit (CD) is a CD with an interest rate that can change.
XD is a symbol to indicate that a security is trading ex-dividend.
Yield on cost is an investment's annual dividend divided by the original purchase price of the investment.
YOC stands for yield on cost, which is an investment's annual dividend divided by the original purchase price of the investment.