Final answer:
Blue-chip stocks are the best option for those seeking steady dividends and low-risk income, as they come from large and financially stable companies known for issuing reliable dividends.
Step-by-step explanation:
The type of stock that provides a steady dividend and income with low risk is the Blue-chip stock. Blue-chip stocks are shares in large, well-established, and financially sound companies with a long record of stable and reliable growth.
These companies are known for their resilience in economic downturns, ability to generate steady profits, and paying consistent dividends, thus making them a low-risk investment for those seeking income through dividends.
Dividends represent a portion of a company's profits paid directly to shareholders, and blue-chip stocks are often favored by income-seeking investors for this reason.
Capital gains, Uàon the other hand, result from selling a stock for more than the purchase price, which can be more uncertain. Blue-chip stocks may offer less potential for capital gains compared to growth stocks.