You are a financial advisor. Your client wants stock that pays regular dividends. Which of the following do you advise the client to buy?

A. Growth stock
B. Income stock
C. Preferred stock
D. Common stock



Answer :

Final answer:

Income stock pays regular dividends to shareholders, while preferred stock offers a fixed dividend income. These types of stocks provide a reliable source of income for investors.


Explanation:

Income stock is the type of stock that pays regular dividends to its shareholders. Dividends are periodic cash payments made by the company to its stockholders, providing them with a steady income stream.

Preferred stock holders are given priority over common stockholders in receiving dividends. These dividends are usually fixed, offering a predictable income to the investors.

Investing in income stocks or preferred stocks would be advisable for a client seeking regular dividend payments from their investments.


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