Times Preferred Dividends Earned

Preferred stockholders are primarily interested in the return yield on their investment.  The primary measure of safety for a preferred stockholder is the Times Preferred Dividends Earned.  This measure is an indicator of a company's ability to meet its preferred dividend payments to shareholders.

The calculation of Preferred Dividends Earned is as follows:

Net Income Available to Preferred Stockholders / Annual Preferred Dividends Requirements