Investing for income – known as dividend investing when applied in the sharemarket – is a strategy that involves investing for income while planning not to access the capital. Often it entails a preference for high income yields. But necessarily so. Dividend investing may also entail buying stocks that can grow the dividends they pay out over time. Either way, the underlying motivation is investing to capture an income stream.

Income investing can be popular among wealthier individuals. It is often considered suitable for retirees, including parts of the super industry, on the basis that the aim during retirement is to generate ‘income’ to live on.  

Does the strategy make sense? There are arguments on both sides, and no…