If a company has preferred stock, it must pay the dividends on the preferred even if it shows no profit for the year.

Name: If a company has preferred stock, it must pay the dividends on the preferred even if it shows no profit for the year.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Preferred stock dividends are not mandatory and can be deferred if the company does not have sufficient profits, unless they are cumulative preferred dividends which accumulate and must be paid before common dividends.

If a Company Has Preferred Stock, It Must Pay the Dividends