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 ?
Since we deducted losses along the way there will be a special capital gain dividend requirement which will be offset by a portion of the Toys 'R' Us loss.
The SSS was also looking to adopt a dividend requirement for foreign equity that would match the dividend payment scheme of domestic equities, Dooc added.
The company is therefore proposing that it changes its monthly contributions from PS30,000 to PS10,000, and that both the 65% of profit requirement and the 30p dividend requirement be removed.
Preferred shares generally have a dividend requirement that makes them appear similar to debt.
Curran said the Foundation also will soon select a financial services company to conduct product pricing surveys to assist the Foundation in determining initial and ongoing compliance with the interest and dividend requirement of the new rule.
Net income reached $15.9 million from $12.6 million, before a small charge for a dividend requirement in the 1997 quarter.
(12) The Tax Court distinguished the preferential dividend requirement in Erie Lighting on the grounds that the ELC board was not required to pay a dividend; rather, the ELC board was required to pay dividends first to the preferred stock if and when the ELC board determined to pay dividends at all.
However, there may be future negative rating actions if there is a decline in AMEX Assurance s premium writings caused by a global economic downturn or terrorist event, which results in a sustained reversal in operating profitability and/or an increased dividend requirement from American Express that results in a material decline in its capitalization.
Are attorneys and law firms responsible for monitoring their institution's compliance with the interest or dividend requirement of the rule?
A profitable overall earnings trend offset by relatively modest dividend requirements have supported surplus growth and a sustained solid level of risk-adjusted capitalization.
The SOE Ownership Policy, developed with the support of ADBs Pacific Private Sector Development Initiative (PSDI), outlines the rationale for SOE ownership, performance expectations, privatization principles, and dividend requirements. Aligned with Solomon Islands SOE Act and National Development Strategy 20112020, it will guide government investment, oversight, and divestment of SOEs.
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.