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Topic
Income
14 guides in Finabase Learn
- Cash-secured put Selling a put option while holding enough cash to buy the shares if assigned, collecting premium in the meantime.
- Cash-secured puts: mechanics, payoff and the obligation to buy How selling a cash-secured put works, what it can earn and lose, what the obligation to buy shares means in practice, and how it compares with a covered call.
- Closed-end fund A fund with a fixed number of shares that trade on an exchange, often at a premium or discount to the value of its holdings.
- Covered Call Selling a call option against shares already owned, collecting premium in exchange for capping the upside above the strike.
- Covered calls: how they work, payoff, and assignment risk How a covered call combines owned shares with a sold call, what it can earn and lose, why the upside is capped, and what happens when the shares are called away.
- Dividend A payment a company makes to its shareholders out of profits, usually in cash and often quarterly in the US.
- Dividend Payout Ratio The share of a company's earnings paid out as dividends; a ratio above 100% means it pays more than it earns.
- Dividend Yield A stock's annual dividends per share divided by its share price, expressed as a percentage.
- DRIP (Dividend Reinvestment Plan) A program that automatically uses cash dividends to buy more shares of the same stock or fund, often in fractions.
- Ex-dividend date The first trading day on which a stock trades without its next dividend; buyers on or after this date do not receive it.
- Preferred stock A class of shares that pays a set dividend ahead of common stock and ranks above it in liquidation, usually without voting rights.
- Real estate investment trust (REIT) A company that owns or finances income-producing real estate and must pay out at least 90% of its taxable income as dividends.
- Stock dividend A dividend paid in additional shares instead of cash, raising each holder’s share count while the value of the stake stays the same.
- Yield The income an investment pays, such as interest or dividends, expressed as a percentage of its price or cost, usually per year.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.