What investment option would be least favorable for someone seeking a consistent income stream?

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The option focusing on high-growth stocks that pay no dividends is indeed the least favorable for someone seeking a consistent income stream because such investments typically do not provide regular cash payouts. High-growth stocks usually reinvest their earnings back into the company to fuel future growth rather than distributing profits to shareholders in the form of dividends. This means that while there may be potential for capital appreciation, an investor would not receive a steady income from these stocks, which is a primary need for someone looking for consistent cash flow.

In contrast, government bonds, real estate investment trusts, and money market accounts are designed to provide regular income. Government bonds typically pay interest at fixed intervals, offering reliability and predictability. Real estate investment trusts often distribute a portion of their income as dividends, giving investors a share in the earnings generated from property ownership. Money market accounts usually yield interest at regular intervals, contributing to consistent returns. Thus, for an individual specifically wanting a dependable income stream, the high-growth stocks that pay no dividends would not meet that need.

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