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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • preferred dividend — A payment of a corporation s profits to holders of preferred shares of stock. (See also: preferred stock) Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc. Nolo’s Plain English Law Dictionary. Gerald N. Hill,… …   Law dictionary

  • preferred dividend — UK US noun [C] US FINANCE, STOCK MARKET ► PREFERENCE DIVIDEND(Cf. ↑preference dividend) …   Financial and business terms

  • preferred dividend — A dividend declared and paid on preferred stock. A dividend payable by virtue of contract to one class of stockholders in priority to that to be paid to another class. 19 Am J2d Corp § 809 …   Ballentine's law dictionary

  • preferred dividend —    A payment of a corporation s profits to holders of preferred stock …   Business law dictionary

  • Preferred Dividend Coverage Ratio — A coverage ratio that measures a company s ability to pay off its required preferred dividend payments. A healthy company will have a high coverage ratio, indicating that it has little difficulty in paying off its preferred dividend requirements …   Investment dictionary

  • preferred dividend coverage — net income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Bloomberg Financial Dictionary …   Financial and business terms

  • cumulative preferred dividend — Dividend on preferred stock which, if declared at the end of a particular year, must be paid before any common stock dividend is paid. See also dividend …   Black's law dictionary

  • dividend — div·i·dend / di və ˌdend/ n 1: the part of corporate net earnings distributed usu. periodically (as quarterly) to stockholders in the form of cash, additional shares, or property either as a set amount per share or a percentage of par value… …   Law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

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