For many income investors, the ideal stock is one that pays dividends regularly and offers a high yield in proportion to its price. The investor for income is in good company. For 16 years—from 1942 through 1957—the common-stock dividends paid out by companies listed on the New York Stock Exchange showed an increase over the year before. Investment for income is generally a long-term proposition. It implies stability. (Although 100 shares of a stock paying $3 would produce $50 more income annually than one paying $2.50, it would take more than a year to rationalize the commissions and taxes paid to sell the latter and buy the former).


Given the steady upward trend of stocks in this century, a well-chosen security will reward the income investor who holds it patiently. Safety offers a discouragingly low return.

Investment for income is generally a long-term proposition. It implies stability. And it makes particularly good sense for people who do not expect to become market experts or security analysts. In fact, there are respected authorities who state flatly that the investor who seeks anything more than income from securities must be classed as a speculator, a risky role to play for any but the most sure-footed professional.

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