10 Things Every Dividend Investor Should Know

4. Preferred and Special Dividends:

Preferred dividends are paid on preferred stocks. These dividends are considered more important than common stock dividends and are calculated based on the par value of the preferred stock. These dividends are generally paid out quarterly, providing investors with a steady income stream.

On the other hand, a special dividend is a one-time supplemental dividend that is mainly paid when the company has excess cash and wants to share profits with shareholders. To learn more about special dividends, have a look at our article, 11 Stocks that Paid Special Dividends in 2024.