Guaranteed Return (redirected from Guaranteed Returns)

Guaranteed Return

A return that a company is required to pay. Bonds and coupons have guaranteed returns because the issuing company agrees to pay coupons and guaranteed dividends. This contrasts with non-guaranteed returns, such as the dividends on common stock, which a company may decide not to pay. A guaranteed return does not necessarily mean that the company will pay (the company may, for example, default or go bankrupt). However, under some circumstances, the holders of securities with guaranteed returns may force the liquidation of the company.