Preferred Dividend

  

Dividends represents cash payments to shareholders. Like, if you own 100 shares of Manny’s Muffin Mansion Inc., and they declare a $0.50 per share dividend, you’ll get a check for $50.

Preferred dividends don’t go to all shareholders, just to holders of the company's preferred stock. (Common stock holders get common stock dividends.) So the preferred dividends don't go to the dirty hoople heads who hold the common shares, and who breathe through their mouths and likely drink milk right from the container, always letting a little stream dribble down their disgusting, inverted chins. No, these dividends go to the fancy, first class-flying, “Yes, I’m on the list to go backstage at this Beyoncé concert” holders of preferred stock.

In practical terms, it means that, if the company runs out of cash to pay its dividends, the preferred stockholders get paid first. Just like how the rich folks on the Titanic got first dibs on the lifeboats.

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