Series 82: Dividends

Dividends

As with common stocks, dividend payments for preferred shares are received quarterly. Unlike common stocks, dividend payments for preferred shares are determined when the stock is issued. A fixed rate preferred stock may set its dividend payment at a fixed dollar value ($5), or it may be based on a percentage of the par value of the stock as stated on the stock certificate (5%). A floating rate or adjustable-rate preferred stock will have an adjustable dividend based on some formula, such as 1% above the interest rate on 90-day Treasury bills.