Preferred Dividend
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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. |
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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. |
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