Income Stock

A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock.

Income Trust

Also called income funds. Income trusts are trusts structured to own debt and equity of an underlying entity, which carries on an active business, or has royalty revenues generated by the assets of an active business. By owning securities or assets of an underlying business, an income trust is structured to distribute cash flows, typically on a monthly basis, from those businesses to unit holders in a tax-efficient manner. The trust structure is typically utilized by mature, stable, sustainable, cash-generating businesses that require a limited amount of maintenance capital expenditures. An income trust is an exchange-traded equity investment that is similar to a common share. There are four categories of income trusts: business trusts; real estate investment trusts (REITs); energy trusts; and power, pipeline, and utility trusts.

Funds From Operations (FFO)

Used instead of earnings to evaluate real estate investment trusts (REITs). Depreciation of real estate that was deducted from earnings is added back in to calculate FFO. Any gains or losses from the sale of real estate is also removed. 

Income Stock

A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock.