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Simple income investing

Updated on July 13, 2011

Simple income investing requires only stocks and bonds

Simple income investing uses only investments in stocks and bonds to create reliable, increasing income. Simple income investing followers invest in lower risk companies and governments; all the time knowing that investing in stocks and bonds carries risk.

Dividends and interest are two of three legs of this simple income income strategy. The third key is to use covered call options.

Think about how simple this is so far. You are only dealing with stock in a company and the bonds issued by a company. If you stick to very strict criteria, income investing can truly be simple. Every company has to make money and pay a dividend and the money they make has to be greater than the dividend paid to you. Every company has to have increased their dividend and be on solid financial footing.

Find a company that pays at least a three percent dividend yield and has increased it every year and you have a dividend machine. Find a company with at least two percent dividend yield but is a growing machine you can write covered calls.

Simple income investing is easier than you think. Stop worrying about the value of your investments and start looking at the income. I look for a new income investment every week; 34 so far. Each meets the minimum criteria. And, five of the first six have already increased their income.

Simple Income Investing

Very Truly Yours,



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    • frugalfamily profile image

      Brenda Trott, M.Ed 6 years ago from Houston, TX

      Thanks for sharing. Picking something new every weeks sounds like a fun hobby.