Where and How to Find Preferred Dividends

Preferred dividends offer investors regular payments from a company. They can be a valuable component for those seeking consistent income or specific investment characteristics. Understanding how to locate and interpret information about these dividends is important for informed financial decisions.

Understanding Preferred Dividends

Preferred dividends are cash payments a company distributes to its preferred shareholders. This stock differs from common stock because preferred shares typically pay a fixed dividend rate and have priority in receiving payments. Preferred shareholders must receive their payments before common shareholders, and this priority extends to liquidation events. They have a higher claim on assets than common stockholders, though they are subordinate to bondholders.

Preferred dividends are often based on the stock’s par value and a predetermined dividend rate. For instance, a preferred stock with a $100 par value and a 5% dividend rate would pay $5 annually per share. These payments are commonly distributed on a regular schedule, often quarterly. A key feature is whether preferred dividends are cumulative or non-cumulative. Cumulative preferred stock means any missed dividend payments accumulate and must be paid before any dividends can be issued to common stockholders. Non-cumulative preferred stock does not accumulate missed payments, meaning if a dividend is skipped, the investor forfeits that payment.

Sources for Preferred Dividend Information

Company financial statements, particularly those filed with the U.S. Securities and Exchange Commission (SEC), are official and comprehensive sources. The annual report on Form 10-K and quarterly reports on Form 10-Q are key documents. These filings provide detailed financial data and disclosures about a company’s securities.

Company investor relations websites also serve as direct sources for dividend information. Public companies often maintain dedicated sections for investors, which include SEC filings, press releases, and summaries of their capital structure. These sections offer quick access to dividend announcements and preferred stock terms. Brokerage platforms, where investors manage accounts, typically provide detailed security information for preferred stocks, including current dividend yields, payment histories, and other relevant data.

Financial news and data websites are another common avenue for aggregated financial information. Reputable sites collect and display data from various sources, making it convenient to research preferred stocks. These platforms often feature searchable databases where users can find dividend details, news related to dividend declarations, and historical payment trends.

Locating Data Within Financial Documents and Platforms

To find preferred dividend data within SEC filings, use the EDGAR database on the SEC’s website (sec.gov). After searching for a company by name or ticker, navigate to their 10-K (annual report) or 10-Q (quarterly report). Within these documents, look for sections like “Notes to Financial Statements,” “Statement of Stockholders’ Equity,” or disclosures related to “Preferred Stock” or “Dividends.” Use the document’s search function for terms like “preferred dividends” or “preferred stock” to pinpoint information.

On company investor relations websites, finding preferred dividend information involves navigating to the “Investor Relations,” “Financials,” or “Shareholder Information” section. Look for links to “SEC Filings,” “Dividend History,” or a specific “Preferred Stock” page. Companies like JPMorgan Chase or Wells Fargo often list their preferred stock series and associated dividend declarations directly on these pages.

For brokerage platforms, search for the specific preferred stock by its ticker symbol. Once on the security’s page, locate tabs or sections labeled “Dividends,” “Key Statistics,” “Overview,” or “Financials.” These sections typically display the dividend rate, payment frequency, and historical dividend payments. Many platforms also show the current yield, which is the annual dividend divided by the current market price.

Financial news and data websites operate similarly. Use the search bar to enter the preferred stock’s ticker or company name. The results page usually has a dedicated section for “Dividends,” “Key Stats,” or “Quotes” where dividend information is presented. These sites often provide a snapshot of the dividend yield, ex-dividend date, and payment date, along with recent news releases concerning dividend declarations.

Interpreting Preferred Dividend Details

Once preferred dividend information is located, understanding its components is important. The dividend rate, often expressed as a percentage of the par value, indicates the fixed annual payment per share. For example, a 5% preferred stock with a $25 par value pays $1.25 annually. The dividend yield, calculated by dividing the annual dividend by the current market price, represents the return an investor receives relative to the stock’s cost.

Payment frequency specifies how often dividends are distributed, commonly quarterly, but sometimes monthly or semi-annually. Key dividend dates include the ex-dividend date, record date, and payment date. The ex-dividend date is the cutoff; an investor must own the stock before this date to receive the next dividend. The record date is when the company identifies registered shareholders eligible for the dividend. The payment date is when the dividend is paid to shareholders.

The cumulative or non-cumulative status of the preferred stock is a key detail. Cumulative preferred stock ensures that if a company misses a dividend payment, those missed payments accrue and must be paid before any common stock dividends are distributed. Non-cumulative preferred stock does not have this feature, meaning missed dividends are not recoverable. Callability is another feature, meaning the issuing company has the right to repurchase the stock at a predetermined price after a specified date. This can impact an investor’s total return if the stock is called, often when interest rates decline.