Dividends

Fixed income refers to the process of finding assets that regularly pay out a quarterly or yearly dividend for taking a specified risk. Fixed income investors are primarily looking for securities that are paying a constant dividend in return for the risk of holding or investing in a particular asset.

The fixed income landscape includes institutional investors, retirement funds, and other retail investors who are looking for a consistent dividend that can supplement their needs. Retired investors and older investors generally prefer fixed income because of the income needed and the perceived lower risk if the asset has been properly analyzed and researched. Today, the fixed income industry is one of the largest areas of investment management and continues to grow.

Fixed income includes the investment research and analysis of equity dividends, Government bonds, corporate bonds, preferred shares, and any other asset that pays out a yield. Fixed income investors utilize patience, the analysis of cash flows, and the basics of bond math to make decisions. They are primarily long-term investors and look to collect a dividend for an extended period of time.