1. Stocks: Dividend income derived from ownership of company stock. A dividend is a portion of company's earnings that is divided and given to shareholders based on their equity in the companyÃ?â??or amount of shares held in company stock. Dividends are usually issued on a dollar amount per share basis. 1. Stocks: Dividend income derived from ownership of company stock. A dividend is a portion of company's earnings that is divided and given to shareholders based on their equity in the company—or amount of shares held in company stock. Dividends are usually issued on a dollar amount per share basis. 2. Mutual Funds: A mutual fund which invests in company stocks that produce consistent dividend income and show great potential for capital appreciation.