Dividend guarantee

Guarantee that a minimum dividend will be paid on preferred shares

Shareholders who own preferred shares receive a dividend guarantee to compensate for the fact that their shares do not carry voting rights. The stock corporation can postpone the payment of the dividend until it has had a ’’more profitable’’ year.

Majority shareholders receive a dividend guarantee if they have entered into an affiliation agreement with the company and are excluded from a profit transfer agreement.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.