Utilities provide the purest examples of such companies.
Because the stock can be expected to grow as the demand for electricity in California grows. While collecting income comparable to the T-Bill, you stand to profit from an investment likely to grow at a rate comparable to that of the economy of California, historically a pretty good bet. Now that you're thinking in terms of balancing immediate rewards in the form of dividends and deferred capital gains from appreciation of stock if a company is successful, several other strategies seek your attention. In the back of the room, behind the nickel slots, are disheveled mute characters wearing signs around their necks. Dividends can be seen as equalising the valuation of companies at different stages of maturity.