Whether your focus is on income investing or you just want some extra cash at the end of the month, chances are you can earn more.
In fact, do you know how much income your investments generate for you, or exactly what your investment yield is? If not, it’s time to check your dashboard—and then ask a more important question:
Is this the best you can do without increasing risk or sacrificing quality?
Chances are, it’s not. In this post, we’ll show you how to boost your portfolio income—without compromise.
What is income investing?
Income investing is an investment strategy focused on generating regular income from a portfolio, rather than relying primarily on capital appreciation. It typically involves assets like dividend-paying stocks, bonds, real estate investment trusts (REITs), and other instruments that produce consistent payouts. The goal is to create a steady stream of earnings that can be used for living expenses, reinvestment, or long-term wealth preservation.
Beware of tradeoffs in income investing
A common trap in income investing is chasing the highest yield at any cost. Dozens of blogs and sites hype sky-high dividend stocks—but they often leave out a key detail: those yields are usually high because the stock price keeps on falling.
Remember, dividend yield = payout ÷ stock price. So when the price drops, the yield spikes. But here’s the catch—what you gain in dividends is often wiped out (or worse) by losses in stock value.
Finding stocks and ETFs to boost investment income
Identifying suitable stocks and ETFs is easier than you imagine. You already know what you want to improve – investment income. This information is right there on your dashboard.
Here’s how you can boost your investment income in 3 simple steps.
STEP 1: Check your average portfolio investment yield on the dashboard
STEP 2: Look at your portfolio fundamentals and identify securities with below average yield
In the Fundamentals tab, check the Yield column, which indicates the yield of each of your portfolio holdings. To make things easy for you, you can sort from highest to lowest, or from lowest to highest.
Identify a holding yielding less than the portfolio average. Ideally, you’d also factor in the Ziggma Stock Score. If a holding yields below the portfolio average AND also has a below average Ziggma Score, then you definitely want to consider making a switch.
STEP 3: Screen for stocks or ETFs with yields in excess of portfolio yield
Now navigate to the screener. In order to boost your investment income, screen for stocks or ETFs with a yield that exceeds your portfolio yield. Important: Don’t go down the rabbit hole of being too greedy on investment yield. Be sure to set a reasonable upper limit to yield in your screen.
Portfolio optimization and income investing
Let’s say you’ve found a stock or ETF that will boost your portfolio income. Now, you may want to make sure that it makes your portfolio better overall – or at least not worse off – before hitting the Buy button.
These are the checks a prudent investor should run:
- Portfolio diversification: Maintain a well-diversified portfolio
- Portfolio risk: Keep portfolio beta stable
- Portfolio quality: Maintain or at least increase portfolio Ziggma Score
The Portfolio Simulator lets you run these checks in a matter of seconds. Simply enter your trade and hit Simulate to see your key portfolio parameters pre- and post-trade.
Investment income makes sense for all types of investors
Boosting your portfolio for income doesn’t mean chasing the highest yields—it means making smart, deliberate choices that enhance cash flow without increasing risk. Virtually any portfolio can be fine-tuned to generate more income through better asset selection, strategic diversification, and thoughtful rebalancing. By focusing on sustainable yield rather than headline numbers, investors can enjoy consistent returns while preserving capital. The key is to ensure that income gains don’t come at the expense of portfolio quality or long-term growth potential. Done right, income optimization can provide greater financial stability and flexibility—without compromising what matters most.
Frequently Asked Questions
Who is income investing for?
Income investing is ideal for anyone seeking regular, predictable cash flow from their investments—whether for retirement, supplementing a salary, or covering living expenses. It appeals to conservative investors who prioritize stability over high-risk growth. Retirees, in particular, benefit from income strategies that provide steady payouts without needing to sell assets. But income investing isn’t just for older investors; it’s also valuable for those looking to reinvest dividends and build wealth over time. Ultimately, it’s for anyone who values consistency, discipline, and financial resilience.
What do I need to start income investing?
Anybody with a few $ to invest can start income investing. In fact, you can even get your starting capital topped up with free shares or cash – you can find the best offers from brokers HERE. Open a brokerage account, if you don’t already have one, and get started. Beginners can start out income investing with safe yet high yielding bond ETFs to achieve portfolio yields in excess of 7%.
What are the best securities to buy for income investing?
The best securities for income investing are those that offer reliable, recurring payouts with a strong track record of performance. Dividend-paying stocks—especially from blue-chip companies—are a popular choice for their combination of income and long-term growth potential. Bonds, including government and high-quality corporate bonds, provide fixed interest payments and can add stability to a portfolio. Real Estate Investment Trusts (REITs) are also attractive for their high yields and diversification benefits. Ultimately, the best mix depends on your risk tolerance, income needs, and investment horizon.
Is income investing risky?
Income investing can carry risks, but when done thoughtfully, it is generally more conservative than growth-focused strategies. The main risks include dividend cuts, interest rate fluctuations, and declines in asset prices that can offset income gains. Chasing high yields without considering the underlying asset quality often leads to poor outcomes. However, by focusing on well-established companies, quality bonds, and diversified income sources, investors can manage these risks effectively. In short, income investing is not inherently risky—but careless income investing is.
Important Notice
This article is not investment advice.
We believe the information contained in this text to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions available data and are subject to change without notice. Please consider your full financial situation prior to making an investment decision.