Income
For clients who want their portfolio to generate a steady stream of income, we dedicate an appropriate portion of the portfolio to Funds and dividend paying stocks, which will usually include Regulated Investment Companies (RICs). RICs, where at least 90% of capital gains, dividends and interest are passed onto shareholders, avoid taxation at the corporate level. There are three types: Real Estate Investment Trusts (REITs) invest in real estate through properties or mortgages, Business Development Companies (BDCs) invest in the debt and/or equity of small and mid-sized businesses, and Master Limited Partnerships (MLPs) invest in natural resources, real estate and commodities.
