Amortization

Amortization is systematic allocation of an intangible asset, premium, discount, or other amount over a stated period.

Why this matters to income investors

The charge or discount allocation can change reported earnings without matching current cash.

How to use amortization in your research

Confirm the accounting basis, share count, and period before comparing figures. Trace material changes to the company’s reported results and ask whether they reach the earnings measure it uses to explain its dividend.

This material is general education and information, not individualized investment, tax, or legal advice.