Hugh Lam

Yeah, sure.

I think the idea of income investing generally, I think most people would be familiar with income from stocks.

I think that generally people understand that a company can pay out shareholders through different means, whether that's buying back their own shares, but also distributing out that profit or earnings in the form of a dividend.

I think that's a common form of income investing that most people would be familiar with.

That's right.

Yeah.

And so, we tend to see companies in Australia generally having higher dividend payout ratios or the amount of the dividend being higher because the nature of those companies, you know, generally lends itself to become more stable in their distribution profiles.

But of course, like Woolworths, like a BHP, like a Coles, etc.

Yeah.

But yeah, there's more to income investing than just dividends.

Of course, we've got fixed income securities, a bond, which is effectively a fixed contract between what we call an issuer.

That can be a government, that can be a corporation.

They issue these securities to holders or investors like us.

And the idea is that there is a fixed contract between these two counterparties or these two parties.

where the investor gets a fixed, what we call a coupon attached to that bond.

So that stream of cash flows typically on a monthly basis and very consistent is another form of income investing.

So I would probably prefer to say those are two most common forms of income investing, but we'll touch upon some other sources.

You know, there are other things like

option strategies that you know get extra yield from selling options there's royalties there's also different ways you can harness fixed income securities to generate um additional yield um i would just say the other one is of course just cash you know i think we're all familiar with term deposits and holding our money in the bank account that of course generates interest and that is technically a form of income as well so that's what we mean by income investing as a whole

Yeah, sure.