Which of the following is the most typical example of a zero-growth dividend stock?
A) The common stock of a firm in the biotechnology industry.
B) The preferred stock of a utility company.
C) The common stock of a firm in the health care industry.
D) The common stock of a firm in the information technology industry.

Question

Quizplus · Accepted Answer

Preferred stock of a utility company is the most typical example of a zero-growth dividend stock. Utility companies are typically regulated and operate in a stable and predictable environment, allowing them to pay consistent dividends without much growth in earnings or stock price. Biotechnology, healthcare, and information technology industries are typically more volatile and have greater potential for growth, making them less likely to be considered zero-growth dividend stocks.

Which of the Following Is the Most Typical Example of a Zero-Growth