dividend requirement

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 ?
The Company satisfied the Maryland Dividend Requirement as of June 29, 2012.
6 million, before a small charge for a dividend requirement in the 1997 quarter.
The after-tax contribution to Windstream's cash flow by the directory business is somewhat less and the effect of its loss on free cash flow will be mitigated by lower interest expense as well as a reduced dividend requirement.
The conversion will reduce Comstock's annual preferred stock dividend requirement by $675,000.
This was before the dividend requirement on the preferred stock or a loss of $485,062 or $0.
CONSOLIDATED CONDENSED EARNINGS SUMMARY For the 3 months ended December 31, 1996 1995 REVENUES 7,280,529 5,695,414 COST AND EXPENSES 7,227,594 5,752,338 PRETAX INCOME (LOSS) 52,935 (56,924) INCOME TAX EXPENSE (BENEFIT) 21,169 (21,180) NET EARNINGS (LOSS) 31,766 (35,744) PREFERRED STOCK DIVIDEND REQUIREMENT 30,547 29,100 NET EARNINGS (LOSS) APPLICABLE TO COMMON SHARES 1,219 (64,844)
Increased interest expense on working capital and financed capital equipment purchases and higher foreign income taxes reduced the operating income to a net loss of $1,193,000 before the preferred dividend requirement.
Relative to its equity, NFI's sizable retained interest portfolio is a key earnings driver and source of liquidity to fund its operations and dividend requirement.
The Board noted that the dividend requirement over the next five years would be nearly $250 million.
Overall, the company's dividend requirement will decrease, as the dividend savings resulting from the Series F call more than offset the increase in the common dividend, resulting in more cash available for other corporate purposes and greater financial flexibility.
Partially offsetting these strengths is AHL's operational concentration in credit insurance products, the challenges inherent in the credit insurance market and high dividend requirements to Citigroup, Inc.
Net income (before dividend requirements on preferred stock) for the 2005 third quarter was $820,629 compared to net income (before dividend requirements on preferred stock) of $1,037,664 for the same period of 2004 due to a higher income tax expense in the current year and the benefit from a net operating loss carry-forward in the comparable quarter a year ago.