How it differs from capital gain
As opposed to the gain from selling an asset at a higher price than it was purchased for (capital gain), income gain refers to income received while continuing to hold an asset. Representative examples include stock dividends, distributions from mutual funds and REITs, and interest from bonds or deposits.
What to keep in mind
Income gain is sometimes described as a stable source of income that is less affected by market fluctuations, but it can be reduced or suspended due to a deterioration in the issuer's business performance, among other reasons. Past performance does not guarantee that income will continue at the same level in the future, so it is important to examine the source of that income, such as business performance and cash flow.