Preferred Dividend Coverage Ratio

外汇网2021-06-19 13:35:55 75

A coverage ratio that measures a company's ability to pay off its required pferred pidend payments. A healthy company will have a high coverage ratio, indicating that it has little difficulty in paying off its pferred pidend requirements.

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Taobiz explains PreferredDividend Coverage Ratio

Not only does this ratio give investors an idea of a company's ability to pay off its pferred pidend requirements, but it also gives common shareholders an idea of how likely they are to be paid pidends. If the company has a hard time covering its pferred pidend requirements, common shareholders are less likely to receive a pidend payment on their holdings.

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