they are determined by the board of directors
The requirement for dividends to be paid in cash to common stockholders is typically determined by the company's board of directors.
Stocks that pay dividends are a stream of income for common stock holders. Dividends are paid out either quarterly or yearly. The level of dividend is determined by the company as an incentive to purchase stock.
they are determined by the board of directors
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
Dividends for preferred stockholders are often stated in advance and do not tend to fluctuate as much as those for common stock.
For my opinion Earning par share refer to a full dividend after expenses. But if we have prefered stock we need to seperate prefered stock dividends and take its balance for common stock dividends by:Earning per share = Balance after prefered stock dividends / Number of shareOne more Dividends per share refer to balance for common stcok after we seperate balance after prefered stock dividends to both side, common stockdividends and retained earning.Dividends per share = Common stock dividends / Number of shareis that right? if another have any ideas please let me know.Thanks.!
Dividends for preferred stock are typically paid at a fixed rate, which is predetermined when the shares are issued. These dividends are usually distributed quarterly, although the schedule can vary by the issuing company. Unlike common stock dividends, preferred dividends must be paid out before any dividends can be issued to common shareholders. If a company faces financial difficulties, it may suspend preferred dividends, but they often accumulate and must be paid later if the stock is cumulative preferred stock.
Preferred stock dividends can be found by checking the company's financial statements or contacting the company's investor relations department. These dividends are typically paid at a fixed rate and are usually listed separately from common stock dividends.
Guaranteed dividends
Preferred stock pays out earnings at fixed, regular dividends
Preferred stock pays out earnings at fixed, regular dividends
Preferred stock have preference over common stock it getting dividends. They are not guaranteed dividends but stand in line first to receive them. Also, in the event the corporations becomes insolvent, after all debts are paid preferred stock holder stand in line in front of common stock holders to get repaid. There are disadvantages to preferred stock over common stock but you didn't ask that.