Stocks that produce returns that are based primarily on dividends are traditionally called _____.

Question

Quizplus · Accepted Answer

Income stocks are known for their high dividend yields, with the primary focus being on generating income for investors rather than capital appreciation. Preferred stocks are a type of stock that typically pays a fixed dividend and has priority over common stock in the event of a company's liquidation. Growth stocks, on the other hand, typically don't pay dividends and are valued based on their potential for capital appreciation. Founders' stocks and classified stocks are not terms commonly used to describe stocks based on dividends.

Stocks That Produce Returns That Are Based Primarily on Dividends