Preferred Dividend
Definition of 'Preferred Dividend'A dividend that is accrued and paid on a company's preferred shares. In the event that a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares. |
|
Investopedia explains 'Preferred Dividend'Preferred stock will typically pay much higher dividend rates than common stock of the same company. This is the main benefit of owning preferred shares. |
|
Related Definitions
Articles Of Interest
-
A Primer On Preferred Stocks
Offering both income and relative security, these uncommon shares may work for you. -
What Is A Dividend?
Income investors love them and growth investors rarely expect them, but just what are dividends? Learn the story behind these payouts and why they are (or aren't) offered to investors. -
How Dividends Work For Investors
Find out how a company can put its profits directly into your hands. -
What is the difference between preferred stock and common stock?
Preferred and common stocks are different in two key aspects. First, preferred stockholders have a greater claim to a company's assets and earnings. This is true during the good times when the ... -
Why do some preferred stocks have a higher yield than common stocks?
Before we answer this question, let's just take a quick review of what a stock's yield is actually measuring.The yield is calculated by taking the stock's annual expected dividend and then dividing ... -
Stock Basics Tutorial
If you're new to the stock market and want the basics, this is the tutorial for you! -
Investing In REITs Instead Of Property
Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio. -
Guide To Embedded Options In Bonds
Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security. -
Visual Guide To Investing In Preferred Stock ETFs
Preferred stock ETFs have become a big hit with some investors. Find out why! -
Build A Dividend Portfolio That Grows With You
Balance risk and return to produce adequate income despite inflation.
Free Annual Reports