Guaranteed shares are a rarely used form of preferred shares where a party other than the original company guarantees the payment of dividends.
Guaranteed share issues, like guaranteed bonds, are most commonly used by railroads and utilities.
Guaranteed stock can also refer to the physical stock that a company has on hand, especially in the retail industry.
In the case of guaranteed shares, the third party must essentially vouch for the party that cannot guarantee the dividend.
By having a guaranteed stock or a full stock of all of its stocks, a company can gain an advantage over competitors who do not have all products available.
Convertible preferred shares are a type of preferred shares that pay dividends and can be converted into ordinary shares at a fixed conversion rate after a certain period of time.
The dividend rate, expressed as a percentage or yield, is a financial ratio showing how much a company pays dividends annually in relation to its share price.
Dividend recapitalization is when a private equity firm issues new debt to raise money to pay special dividends to investors who helped finance the original purchase of the portfolio company.
Dividend yield, displayed as a percentage, is the amount of money a company pays shareholders for holding shares divided by the current price of its shares.
A Dividend Received Deduction (DRD) applies to certain corporations that receive dividends from related entities and mitigates potential triple taxation effects.
Forward dividend yield is the percentage of a company’s current share price that the company expects to pay out in dividends over a specified period of time, usually 12 months.