dividend requirement

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Dividend requirement

The annual earnings minimum required for payment of dividends on a preferred stock.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

dividend requirement

Total annual preferred dividends to be paid by a company.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A profitable overall earnings trend offset by relatively modest dividend requirements have supported surplus growth and a sustained solid level of risk-adjusted capitalization.
Favorably, the majority of the debt is housed at the lead operating company thereby the entire asset position is available to service the debt and is not constrained by statutory dividend requirements.
In addition, operating earnings are dampened by dividend requirements that have averaged 7.2 points on the combined ratio over the last five years.
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 USD6.9m, from USD6.3m during the corresponding period in the previous fiscal.
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.
There is no time constraint for the reinvestment as dividend inflow excluding Abertis is sufficient to fulfil La Caixa Foundation's dividend requirements over the period.
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.