Perpetual Preferred Stock

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DEFINITION of 'Perpetual Preferred Stock'

A type of preferred stock that has no maturity date. The issuers of perpetual preferred stock will always have redemption privileges on such shares. Issued perpetual preferred stock will continue paying dividends indefinitely.

INVESTOPEDIA EXPLAINS 'Perpetual Preferred Stock'

Perpetual preferred stock also has a cumulative version that accumulates dividends from one period to the next. Both types of stock are designed for relatively conservative long-term investors.

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