What is positive equity income commonly referred to as?

Positive equity income is commonly referred to as dividends. This term is used specifically in the context of shares in a corporation where the company distributes a portion of its earnings to shareholders. When individuals own equity in a company, they may receive dividends as a return on their investment, reflecting a share of the company's profit.

Dividends serve as a way for investors to earn income on their equity holdings without having to sell their shares. This income stream is significant for investors seeking to generate cash flow, particularly in retirement or those relying on their investments for ongoing income.

In contrast, the other terms listed have distinct meanings within the financial context. Interest pertains to the payment made for borrowing capital or the earnings from fixed-income investments. Rent income is generated from leasing property, and capital gains refer to the profits made from selling an asset for more than its purchase price. While all these terms relate to income in one form or another, dividends specifically align with the concept of positive equity income, thereby making it the more accurate term in this scenario.