Income stocks are stocks that offer a regular and stable income, usually in the form of dividends, over a period of time with a low level of risk.
Income stocks usually offer high returns, which can generate a large portion of the overall returns of the securities.
An ideal income stock should have very low volatility, a dividend yield higher than the prevailing 10-year Treasury rate, and modest annual earnings growth.
Income stocks are different from growth stocks, which have higher volatility and risks associated with their returns.