Not all investors want to take on the risk that comes with making a killing through stocks. Some people just want to invest in the stock market as a means of investing in cds for dummies a steady income.

They don’t need stock values to go through the ceiling. Instead, they need stocks that perform well consistently. If your purpose for investing in stocks is to create income, you need to choose stocks that pay dividends. Dividends are typically paid quarterly to stockholders on record as of specific dates. The difference between dividends and interest Don’t confuse dividends with interest.

Most people are familiar with interest because that’s how you grow your money over the years in the bank. When you buy stock, you buy a piece of that company. The importance of an income stock’s yield When you invest for income, you have to consider your investment’s yield and compare it with the alternatives. The yield is an investment’s payout expressed as a percentage of the investment amount. Looking at the yield is a way to compare the income you expect to receive from one investment with the expected income from others. Therefore, if you have to choose between those two stocks as an income investor, you should choose Smith Co. Of course, if you truly want to maximize your income and don’t really need your investment to appreciate significantly, you should probably choose Brown Co.

Dividend-paying stocks do have the ability to increase in value. They may not have the same growth potential as growth stocks, but at the very least, they have a greater potential for capital gain than CDs or bonds. Immediate Annuity Calculator Use this calculator to determine regular payouts for immediate annuities. Results shown are estimates only and should not be confused with actual product performance. We make no guarantees that results on this page correlate to actual products. Don’t Just Shop, Implement a Solid Retirement Strategy Purchasing an annuity is a big decision. Online research is a good start, but prudent investors should discuss all their options and risks with an independent financial advisor.

Request a free, no-obligation consultation today, along with a report of current rates on brand-name annuities. Speak with an advisor over the phone about annuities for FREE. About The above calculator is good for estimating monthly payouts on fixed or lifetime annuities. Most fixed annuities are immediate, paying earnings on a monthly basis. Some fixed annuities are deferred, accumulating interest through the contract term with a single large withdrawal at the end. For deferred annuity calculations, click here. How This Calculator Works Rather than accumulating a large balance, immediate annuities issue periodic payments.