Having run through some general principles and approaches to investing for income in the previous articles in this series, in this final instalment we will take a deeper dive into some specific investments.
There are different reasons for wanting income: to add a little to the total shareholder return (TSR), which mostly comes from capital growth; to lower your tax bill (dividend income is taxed at a lower rate than interest income); to take advantage of a modest yield that should grow into a solid income source; to select a stock that simply shows strong capital discipline (which often drives a good TSR); or just to look to maximise income without too much regard for capital risk.