Guaranteed Dividend

(redirected from Guaranteed Dividends)

Guaranteed Dividend

A dividend that a company is required to pay on its preferred stock. Guaranteed dividends are generally cumulative, meaning that if a company skips a payment, it can make no dividend payments on common stock until preferred stockholders are satisfied in full. Under some circumstances, preferred stockholders can force the liquidation of a company that does not pay its guaranteed dividends.
References in periodicals archive ?
The complaint alleges that investors were told that their funds would be used for the companies and some were guaranteed dividends or double-digit returns.
Regarding the pounds 604 "funding deficit", I have calculated, from UK government figures, that over pounds 500 is due to the private finance initiative scheme used in England, but rejected in Wales, where capital expenditure is transferred to current expenditure (ie, in this case, taken directly from pupil education to pay huge guaranteed dividends to largely American investors).
Conversion would also have a paper effect on IFRS equity because it would extinguish the liability component on preferred shares calculated as aNPV of the minimum guaranteed dividends' (as required by the IAS 32 standard on initial recognition).
Those burdens loaded upon the companies out of political consideration became a boomerang for the administration when it came to the distribution of guaranteed dividends to private stakeholders.
In other words, in exchange for accepting diluted voting power, the Mitsui Group was entitled to additional, guaranteed dividends.
We stress that guaranteed dividends and stable cash flows are the key to the attractiveness of investment in utilities names abroad.

Full browser ?