Preferred Stock Calculator

Use our free preferred stock calculator to analyze preferred stock investments. Compute dividend yield, intrinsic value using the dividend discount model, and total annual income from your preferred shares.

Financial

Currency

Annual Dividend per Share

Par Value

Market Price

Dividend Growth Rate (%)

Required Rate of Return (%)

Shares Owned

Formula

Preferred stock is a hybrid security with fixed dividend payments, similar to bonds. This calculator helps you evaluate preferred stock investments by computing dividend yield, intrinsic value using the dividend discount model, and total annual income.

Intrinsic Value (no growth) = D / r, Intrinsic Value (growth) = D / (r - g)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the annual dividend per share and par value.
2Enter the market price (optional) to see dividend yield.
3Set the dividend growth rate (0 for fixed dividends) and required rate of return.
4See the intrinsic value and compare to market price.

Examples

$5 dividend, $100 par, $95 market price, 8% required return

1.Dividend yield = $5 / $95 = 5.26%
2.Intrinsic value = $5 / 0.08 = $62.50
3.Annual income = 100 Ã— $5 = $500

Result: $500.00

Frequently Asked Questions

Preferred stock is a class of ownership that has priority over common stock for dividends and assets. It typically pays a fixed dividend and has no voting rights.

Preferred stock is valued using the dividend discount model. For no-growth preferred stock, value = annual dividend / required rate of return.

Preferred stock pays fixed dividends and has priority for payments, but usually doesn't have voting rights or participate in company growth beyond the fixed dividend.

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Preferred Stock Guide

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

Preferred stock is a class of ownership that has priority over common stock for dividends and assets. It typically pays a fixed dividend and has no voting rights.

Preferred stock is valued using the dividend discount model. For no-growth preferred stock, value = annual dividend / required rate of return.

Preferred stock pays fixed dividends and has priority for payments, but usually doesn't have voting rights or participate in company growth beyond the fixed dividend.

Preferred Stock Calculator

Formula

How It Works

Examples

$5 dividend, $100 par, $95 market price, 8% required return

Frequently Asked Questions

What is preferred stock?

How is preferred stock valued?

What is the difference between preferred and common stock?

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Preferred Stock Calculator

Formula

How It Works

Examples

$5 dividend, $100 par, $95 market price, 8% required return

Frequently Asked Questions

What is preferred stock?

How is preferred stock valued?

What is the difference between preferred and common stock?

Related Calculators

Related Articles