Dividend Enhanced Convertible Stock - DECS

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DEFINITION of 'Dividend Enhanced Convertible Stock - DECS'

Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company's stock.

INVESTOPEDIA EXPLAINS 'Dividend Enhanced Convertible Stock - DECS'

Dividend enhanced convertible stocks provide the holder with the right to convert the security into the underlying company's common stock.

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