Income investing is an investment approach focused on generating regular, predictable cash flow, rather than primarily seeking capital growth.

How income investing works

Income investors prioritise assets that pay ongoing income, such as:

• Dividends
• Interest payments
• Rental income
• Contracted or regulated cash flows

The goal is to provide steady income over time, often to support living expenses or portfolio stability.

Common income producing investments

Income investing commonly includes:

• Dividend paying shares
• Bonds and fixed income securities
• Property investments, including:
  • Direct commercial property
  • Property funds and REITs
• Infrastructure investments with long-term contracts or regulated revenue

Key characteristics of income investing

Income investing typically features:

• Focus on cash flow rather than price growth
• Preference for stable, established assets
• Often lower volatility than growth focused strategies
• Returns driven mainly by income yield, with capital growth as a secondary benefit

Who income investing suits

Income investing is commonly used by:

• Investors seeking regular income
• Retirees or income focused portfolios
• Investors aiming to reduce reliance on market price movements