dividend requirement

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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 ?
'No matter how much public finance we are pouring into the schemes, the required dividend is not coming out,' he voiced concern.
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.
The company's net loss attributable to common stockholders was $2.1 billion in this year's fourth quarter, with $2.2 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.
What may happen is that funds can only be converted to CFs after the declaration and remittance of the required dividends.
And in March, commerce secretary Younas Dagha will hold meeting with vice commerce minister of China to give final shape to the agreement." First FTA with China was, he said, concluded in 2012, but it didn't yield the required dividends as the items on which Beijing had provided tariff concessions but later on provided more concession on the said items to Asean countries owing to which Pakistan' products in Chinese market remained no more competitive and Pakistan's exports to China continued to stay at $1.2bn whereas import from China soars to over $15bn.
When this policy didn't yield the required dividends under two previous US Presidents, the frustration of the third, Donald Trump, culminated in a complete ban on all US economic and military aid to Pakistan, expressed via a series of tweets last year blasting Pakistan for playing a "double game" - taking US money to help it fight the Taliban but in fact propping them up in one manner or another.
And the more to come and be implemented in FBR, which will help yield required dividends.
Freddie Mac said it would pay $7 billion in required dividends to the Treasury next month and could make a larger payment based on its own recalculation of tax writedowns.
This was the result of the government's decision to adjust the required dividends from 50 percent to only 10 percent of the net earnings of government-owned and -controlled corporations (GOCCs) generating very low profits.
If Fannie and Freddie continue to post profits in excess of their required dividends, they will be able to do so under the new plan.