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

Question

Quizplus · Accepted Answer

Income stocks are known for producing returns based primarily on dividends. These stocks are generally preferred by investors looking for regular income rather than capital appreciation. Preemptive stocks grant shareholders the first right to buy newly issued shares to maintain their percentage of ownership. Growth stocks, on the other hand, are expected to increase in value over time, often with minimal dividends. Founders' stocks are those held by the original founders of a company and may have different voting rights and restrictions than common stocks. Classified stocks have different classes with varying rights and privileges.

Stocks That Produce Returns That Are Based Primarily on Dividends