preferred dividend coverage


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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preferred debt preferred dividend coverage ratio