InvestorWords.com
preferred dividend coverage
Definition
Remaining funds that are used to pay dividends on preferred shares after all appropriate fees and taxes have been paid. In order to determine a company's preferred dividend coverage, the company's net income (determined by subtracting all costs) is taken and divided by the amount of preferred dividends slated to be paid. Based on this calculation, a company can determine how many dividends it can pay based on current net income.
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Nearby Terms
- preferences
- preferential
- preferential creditor
- preferred creditor
- preferred debt
- preferred dividend coverage
- preferred dividend coverage ratio
- preferred equity
- preferred equity redemption cumulative stock (PERCS)
- Preferred Provider Organization
- preferred redeemable increased dividend equity securities (PRIDES)
