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Preferred Stock DividendsBecause 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:
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:
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