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.
Related information about preferred dividend coverage:
- Preferred Dividend Coverage Ratio Definition | Investopedia
Definition of 'Preferred Dividend Coverage Ratio'. A coverage ratio that measures a company's ability to pay off its required preferred dividend payments.
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A measure of a publicly-traded company's ability to pay dividends to preferred stockholders. It is calculated by taking the company's net income and dividing it by ...
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net income after interest and taxes (but before common stock dividends) divided by the dollar amount of preferred stock dividends.
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Definition of preferred dividend coverage: Remaining funds that are used to pay dividends on preferred shares after all appropriate fees and taxes have been ...
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preferred dividend coverage definition: The measure of a firm's ability to meet its dividend obligations on preferred stock. The greater the coverage, the less the ...
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preferred dividend coverage · preferred provider organization · preferred stock ratio · preliminary prospectus · preliminary scale · premature exercise ...
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See also auction-rate security, callable preferred stock, cumulative, floating-rate preferred stock, participating 1, preferred dividend coverage, prior preferred, ...
- 790FS
The preferred dividend coverage ratio expresses the ability of the firm to meet its preferred stock dividend requirement. Since preferred dividend payment is ...