Preferred Dividend

Filed Under » ,
Dictionary Says

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 Says

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. 

Video Definition

Search results for

'Preferred Dividend'

  • CFA Level 1 Study Guide - Financial Ratios - Calculating Basic and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/basic-diluted-eps.asp
    ... Decisions; 11.29 Degree of Total Leverage; 11.30 Dividend Theories; 11.31 Dividend
    Growth Rate and the Effect of Changing Dividend Policy; ...

  • Series 6 Study Guide - Investment Securities - Corporate ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-securities-preferred-stock.asp
    ... For example, a stock might normally pay a 4% preferred dividend, but it is
    participating up to 7%. In this instance, the shareholder would receive 4% until ...

  • Valuation Of A Preferred Stock

    http://www.investopedia.com/articles/fundamental-analysis/11/valuation-prefered-stock.asp
    ... Considerations Although the preferred shares give a dividend, which is usually
    guaranteed, the payment can be cut if there are not enough earnings to ...

  • Why do some preferred stocks have a higher yield than common ...

    http://www.investopedia.com/ask/answers/07/higherpreferredyield.asp
    ... appreciation when holding preferred shares. In other words, the incentive to
    owning preferred shares is the dividend. If this is the only ...

  • Is preferred stock an equity or a fixed-income security?

    http://www.investopedia.com/ask/answers/06/preferredstock.asp
    ... column. Preferred stock has a fixed dividend rate which makes it a
    "fixed-income security." There are a couple of exceptions, however. ...

  • Introduction To Convertible Preferred Shares

    http://www.investopedia.com/articles/stocks/05/052705.asp
    ... First, convertible preferred shareholders receive a 4.5% dividend (provided Acme's
    earnings continue to be sufficient) before any dividend is paid to common ...

  • 3 Preferred Stock ETFs with Huge Dividends

    http://stocks.investopedia.com/stock-analysis/2012/3-Preferred-Stock-ETFs-with-Huge-Dividends-PFF-PGF-PGX0213.aspx
    ... risky investment, but for an investor with a long investment time horizon and a
    preference for dividend paying investment vehicles the preferred ETFs are an ...

  • The Preferred Way To Play

    http://stocks.investopedia.com/stock-analysis/2009/The-Preferred-Way-To-Play-PGF-PFF-XLF-IVZ-PGX-CMCSA-XEL0925.aspx
    ... second to bond holders. In addition, preferred shares have a fixed dividend,
    paid before common stockholders. Cons for the share ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Preferred Stock ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/preferred-stock.asp
    ... ABC Corporation has a cumulative preferred stock outstanding that pays a $4 dividend
    each year. Due to low sales, the dividend was not paid last year. ...

  • A Primer On Preferred Stocks

    http://www.investopedia.com/articles/stocks/06/preferredstock.asp
    ... Participating: Preferred stock has a fixed dividend rate. If the company
    issues participating preferreds, those stocks gain the ...

Related Articles

Partner Links