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.
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.