dividend requirement

(redirected from Required Dividend)

The annual earnings minimum required for payment of <> 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 ?
In addition to the preferred stock not having a required dividend right, the preferred stock will not have any preferences over the Company's common stock, including no liquidation preference rights.
2 billion of that being its required dividend payment to the Treasury under the Senior Preferred Stock Purchase Agreement.
CPAs should determine the required dividend yield by performing an analysis similar to a market-based approach and comparing the preferred stock's dividend rate with that of a publicly traded stock.
The corporation may not have sufficient cash to pay the required dividend.
Treasury receiving preferred stock with a required dividend of 5% per year and warrants convertible into common stock.
However, Fitch believes that the transaction could be structured in a way that would allow the operating subsidiaries involved to support moderate increases in their respective debt levels or their indirect debt servicing burden via required dividend payments, and still maintain their current ratings.
ECC Capital is currently assessing the impact of potentially converting from a REIT to a C-Corp in order to improve liquidity through the permanent elimination of required dividend distributions and utilize the operating loss carry forwards of its mortgage banking segment.
The estimated required dividend from CSN will be about BRL720 million in 2004 and BRL900 million in 2005.
Malan currently anticipates paying a required dividend based upon 2003 taxable income.
Additionally, the availability of external sources of capital and a stable ownership base would be viewed favorably, since externally imposed constraints on management include most REITs' relatively high required dividend payout and management thereof, as well as any restrictive covenants in bank agreements and indentures, as previously noted.
In January 2003, Valentis made a required dividend payment to holders of the Company's Series A preferred stock.
The estimated required dividend from CSN would likely be about $235 million in 2004, $300 million in 2005 and $335 million in 2006.