How to Find Dividend Per Preferred Share

Preferred shares offer investors income through their dividend structures. They differ from common stock, mainly due to these dividend characteristics. Understanding the dividend per preferred share is important for investors. This guide details preferred share dividends and methods for calculating their per-share amount.

Characteristics of Preferred Share Dividends

Preferred shares typically feature a fixed dividend rate, meaning the payment remains constant over time. This rate is often expressed as a percentage of the share’s par value or as a specific dollar amount per share. For example, a preferred share might have a par value of $25 and a stated annual dividend rate of 5%, or it might simply declare an annual dividend of $1.25 per share.

Preferred stock has dividend priority over common stock. If a company declares dividends, preferred shareholders must receive their full payment before any dividends are distributed to common shareholders. This preferential treatment also applies to asset distribution during liquidation.

Preferred shares are classified as either cumulative or non-cumulative, affecting how missed dividends are handled. For cumulative shares, missed dividends accumulate and must be paid before common shareholders receive any. With non-cumulative shares, if a dividend is missed, it is forfeited and does not accumulate, meaning the company is not obligated to pay it.

Sources for Dividend Information

Authoritative sources for preferred share dividend information are a company’s official financial reports filed with regulatory bodies. For publicly traded companies in the United States, annual reports (Form 10-K) and quarterly reports (Form 10-Q) filed with the Securities and Exchange Commission (SEC) provide comprehensive data. Investors should review sections such as “Stockholders’ Equity” or the “Notes to Financial Statements,” which often contain specific disclosures about preferred stock terms and dividend policies.

A prospectus is crucial, especially for newly issued preferred shares, outlining initial terms like dividend rate, par value, and special provisions. Companies make these documents available on their investor relations websites, which also provide links to SEC filings and other financial disclosures.

Beyond official company documents, financial data providers and news websites offer preferred stock dividend information. Platforms like Yahoo Finance, Google Finance, and various brokerage platforms often list preferred stock symbols alongside their dividend yield, annual dividend per share, and payment frequency. If an investor owns preferred shares, their brokerage statements will detail any dividend payments received.

Determining Dividend Per Share

To calculate the annual dividend per preferred share, use the stated dividend rate and the share’s par value. For instance, if a preferred share has a par value of $25 and a fixed annual dividend rate of 5%, the annual dividend per share would be $1.25 ($25 0.05). This calculation provides the expected annual income per share.

If a company’s financial statements report a total dividend payment for preferred shares, the per-share amount can be determined by dividing the total dividend paid by the number of preferred shares outstanding. This approach is useful when the explicit per-share dividend amount is not immediately available, allowing investors to derive the figure from aggregate data.

Preferred dividends are commonly paid quarterly. If an annual dividend per share has been calculated, this amount can be divided by four to determine the expected quarterly payment. Understanding payment frequency helps investors anticipate cash flows and plan investment income.