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6 May, 2015 - 17:10

Corporations which have a stable dividend record are very attractive to investors seeking a steady flow of investment income. Dividends can be paid out on a quarterly, semi-annual or annual basis. In years when earnings are higher than normal, common shares may be eligible to receive an extra dividend. The declaration of dividends is at the sole discretion of the board of directors. In the event cumulative preferred stock exists and dividends are in arrears, no dividend payments can be made to common shareholders until preferred shareholders have received all dividends in arrears.