Dividend Income

Yes – you can receive cash from your stocks. Sometimes it’s even more than you would get from bonds.

If you own an individual stock, you’ll likely see that cash start to accumulate in your investment account. If you own something diversified that owns a bunch of stocks, you typically have the option up front whether you want to reinvest it. When you buy a mutual fund, you can set up automatic reinvestment, so you’ll see your “shares” increase in quantity as it automatically buys more for you with the cash.

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