A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

Income stocks tend not to appreciate in price as much as blue-chip stocks do because income stock companies are more mature and are not growing as quickly as are blue-chip companies. This statement does not mean that income stock companies are not profitable or are about to go out of business. On the contrary, they have stable earnings and cash flow, but they choose to pay out much higher ratios of their earnings in dividends than other companies do. Utility companies and real estate investment trusts (REITs) are examples of income stocks.