Preferred stock dividends payment

[LASHY1980]

Hi…to my understanding dividend and interest payments are different. Stocks pay dividends…bonds pay interest. In this review question…I was a bit confused on the question when it asked about how much interest the investor will receive…
Should you restate that question to ask "How much will the investor receive at each quarterly dividend payment?
I wasn’t sure if you were asking for the quarterly dividend payment or the semi-annual payment?

[brandonrith]

Hi @LASHY1980 - you are exactly right! Stocks pay dividends, bonds pay interest. The question will be updated immediately!

[LASHY1980]

Thanks! I’m happy to know that I’m confident about something…LOL.

[Brendan]

Unless otherwise stated, should we view Preferred stock dividends as quarterly payments or semi-annual?

SIE Chapter 2.2.1
Dividend payments attract investors to preferred stock. Preferred stock makes cash dividend payments typically on a semi-annual (twice per year) basis, although some issuers make annual or quarterly payments

Then again in 2.4.2
Preferred stock is primarily utilized as a fixed income investment , which typically pays semi-annual income to its investors.

[brandonrith]

Hi @Brendan - good question! You should assume preferred stock pays semi-annual payments unless a question says otherwise. While dividends can be paid quarterly or annually, semi-annual.payments are more common. Stick with the generality unless the question specifically tells you something different.