dividend requirement

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Dividend requirement

The annual earnings minimum required for payment of dividends on a preferred stock.

Dividend Requirement

The earnings of a publicly-traded company that the company has contractually obliged itself to pay out as dividends for preferred stockholders. Most of the time, when a company issues preferred stock, it guarantees buyers a certain dividend. This can be beneficial as it may attract buyers, but at the same time the dividend requirement can put a financial strain on the company. See also: Payout Rate, Plowback Rate.

dividend requirement

Total annual preferred dividends to be paid by a company.
References in periodicals archive ?
Additionally, the lack of outright control and shareholders limited dividend requirements have alleviated the pressure on ASNIC.
The firm said that it earnings before deducting provisions for loan and real estate losses, real estate expenses, income taxes and preferred dividend requirements have increased to USD6.
The revision stems from the company's sustained annual capital growth thanks to its consistently profitable operating results and the absence of dividend requirements by the parent, Southwest Business Corp (SWBC), the service specified.
Alternatively, if dividends are increasing constantly, the total dividends declared in the current year should be employed as a more up-to-date measure of prospective cash dividend requirements.
resulting in a reduction in dividend requirements at Ally Insurance.
Watania's capital position is insulated from potentially onerous dividend requirements by the UAE regulatory environment, which limits dividend distribution until policyholder deficit has been recouped from future earnings.
The rating upgrades reflect SWBC Life's continued growth in risk-adjusted capital as a result of its consistently profitable operating results and the lack of dividend requirements by the parent, Southwest Business Corporation (SWBC).
Future dividend requirements may be exacerbated in a rising interest rate environment.
The revision of the outlook to positive and affirmation of the ratings for SWBC Life reflect the continued annual capital growth at the company as a result of its consistently profitable operating results and the lack of dividend requirements by the parent, Southwest Business Corporation (SWBC).
On a consolidated basis, the companies have reported overall operating profits in recent years, which has enabled them to enhance capitalization through the retention of earnings, given their common parent company's minimal dividend requirements.
Rating constraints reflect the company's secured funding profile, capital markets impact on leverage, dependence on the capital markets to fund portfolio growth, and limited ability to retain capital due to dividend requirements.
Rating constraints reflect the company's relatively short operating history, limited funding flexibility, capital markets impact on leverage, dependence on the capital markets to fund portfolio growth, and inability to retain capital due to dividend requirements.