Preferred stock dividends are paid after interest but before dividends to common stock.

Question

Quizplus · Accepted Answer

Preferred stock is a hybrid security that has both equity and debt features. As a result, its dividends are paid after interest but before dividends to common stock. This means that if a company has any preferred stock outstanding, it must pay its preferred stock dividends before it can pay dividends to its common stockholders.

Preferred Stock Dividends Are Paid After Interest but Before Dividends