Portfolio Income
What is portfolio income?
Portfolio income comes from investments. Dividends, interest and capital gains are all considered as portfolio income.
What is required for generating portfolio income?
1 – Huge investments.
2 – Properly chosen investment vehicles.
The portfolio income can be generated by investing in stocks, exchange traded funds, investment in bonds, and fixed deposit certificates.
Investment in stocks depends on how the stock market is performing. Consult your financial advisor before making an investment decision.
Investing in stocks can generate dividend income or capital gains income. Dividend income is generated by investing in dividend-paying stocks. Companies usually pay dividends every quarter.
In general higher the dividends the higher is the risk.
Investing in dividend-paying ETFs can be less risky than investing in one dividend-paying stock. Investing in ETFs allows you to invest in a pool of different stocks
Capital gains income is generated when you buy a stock or an ETF at a lower price and then sell it at a higher price.
We at the Accounting and Tax can help you with your taxes from interest, dividends or capital gains.
Mansoor Suhail (Mani)
Accountant
MS TAX – BSBA – EA – ICIA – RA
1804 – 1360 York Mills Road
North York, ON, M3A 2A3
TAX for CANADA AND U.S.A
Web: www.theaccountingandtax.com
416 – 283 – 8774
