Recurring Earnings

Recurring earnings are earnings produced by a company’s ordinary operations that an analyst expects can continue under reasonably similar conditions. The term is not a single standardized GAAP measure.

Why this matters to income investors

Dividends depend on repeatable earning power over time. A payment supported by recurring earnings is different from one supported by asset sales, temporary fee waivers or other short-lived items.

How to use recurring earnings in your research

Start with the earnings measure appropriate for the company, reconcile adjustments, compare several periods and avoid assuming that management’s label makes an item recurring.

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