Cash dividends on preferred stock:

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Cash dividends on preferred stock are generally fixed, reflecting the fixed dividend rate set when the preferred shares are issued. This rate does not fluctuate with the earnings of the company, unlike common stock dividends, which can vary based on the company's performance and decisions by the board of directors. Preferred dividends are typically paid before common stock dividends, not after. They are not personally tax-exempt; shareholders must pay taxes on these dividends according to their personal tax situation.

Cash Dividends on Preferred Stock