Which type of shares typically provides a steady income through fixed dividends?

Preferred shares typically provide a steady income through fixed dividends, making them an attractive option for investors seeking regular income. These shares usually have a predetermined dividend rate that is paid to shareholders before any dividends are distributed to common shareholders. This characteristic makes preferred shares similar to fixed-income securities, as they offer a reliable income stream, irrespective of the company's performance, as long as the company is solvent and dividend payments are maintained.

Unlike preferred shares, common shares do not guarantee dividends and are dependent on the company's profitability and board decisions, while debentures represent a type of debt that pays interest but does not confer ownership in a company. Warrants are financial instruments that provide the holder the right to purchase stock at a specific price in the future, but they do not pay dividends like the aforementioned share types. This distinction is vital for investors seeking consistent income from their investments.