Participating dividend

(redirected from Participating Dividends)

Participating dividend

Dividend received from ownership of participating preferred stock.

Participating Dividend

A dividend from participating preferred stock. Shareholders of participating preferred stock are entitled to a minimum dividend, but the participating dividend may sometimes be higher than the minimum depending upon the company's performance.
References in periodicals archive ?
Our financial strength ratings continue to reflect the advantages of our mutual structure, whether it be our focus on participating dividends and product value or our ability to protect the surplus base from extreme economic cycles," says Chris Kelly, Northwestern Mutual vice president and controller.
Although participating dividends are projected, they are not absolutely guaranteed.
This inexpensive source of monitoring further strengthens the implicit contract created by the issuance of projected, participating dividend schedules.
Although participating dividend schedules should reduce owner-manager conflicts in the mutual firm, we believe that they do not fully compensate for the losses of bonding mechanisms formulated in traditional debt markets and monitoring of managers via the market for corporate control.
When the business is managed prudently (careful underwriting of new insurance risks, diligent expense management and a well-diversified investment portfolio) over long periods of time, policyowners can share in the company's success in the form of participating dividends.
Full browser ?