Preferred Stock Channel

Preferred Stock Dividends

Because preferred stock sits above common stock in a company's capital structure, preferred stock dividends have preference over common stock dividends. However, preferred stock dividends do not have preference over any securities that are senior in the capital structure — such as unsecured debt and other types of borrowings.

Understanding a company's full capital structure is important when considering the potential reliability of preferred stock dividends paid by that particular company. Some important questions to ask include:

  • How much common stock "cushion" lies underneath the preferred?
  • Are dividends currently paid to the common stock, and have those dividends been stable?
  • How much debt sits above the preferred?
  • Has the preferred been rated by one of the credit rating agencies?
  • Are there other classes of preferreds?

Gaining an understanding of a company's full capital structure and credit profile can help lead preferred stock investors to better decision-making about which preferred stock dividends are most likely to be maintained. As a jumping off point for further research, here are a few pages on Preferred Stock Channel that present preferred stock dividends:

Other preferred stock dividend resoures:

Preferred Stock Dividends | www.PreferredStockChannel.com | Copyright © 2011 - 2024, All Rights Reserved

Nothing in Preferred Stock Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Preferred Stock Channel; Meet Our Editorial Staff.