Question

Which of the following types of investments generate dividend income? (Check all that apply.)

A. Corporate stock


B. Savings accounts


C. Corporate bonds


D. Government bonds


E. Certificates of deposit


F. Mutual fund investments

Answer 1

Corporate stock, corporate bonds, and mutual fund investments generate dividend income.

Step-by-step explanation:

The types of investments that generate dividend income include corporate stock, corporate bonds, and mutual fund investments.

Dividend income is the money that a company pays to its shareholders as a distribution of its profits. When you invest in corporate stock, you become a shareholder and may receive dividend payments. Similarly, when you invest in corporate bonds, the company may pay you interest income in the form of dividends. Mutual fund investments pool money from multiple investors and invest in various stocks and bonds, so they can also generate dividend income.