what are the classes of dividends?

Answer 1

Some companies issue "preferred" stock, in addition to the usual "common" stock.

The dividend on the common stock is whatever the directors decide it should be. The preferred dividend is set when the stock is issued, like an interest rate. Unlike the interest on a bond, you can't sue if they don't pay it. However, most companies made a promise that if they aren't paying the preferred dividend, they aren't allowed to pay any common dividends, and won't pay until all back preferred dividends are caught up. Some companies have multiple classes of preferred. This only matters if the company is having a severe cash crunch. Example: Union Electric Company

Answer 2

If you mean in terms of ownership, there is preferred stock and common stock. Dividend percentage payments are set for preferred stock holders, and common stock holders are paid after preferred stock holders. In terms of dividend payments, there is a cash dividend usually paid out every quarter, and then there is stock dividend, in which companies pay or issue out more stock instead of cash to help the company to grow more. Money is only made on stock dividends when the stock is sold, and if you sell them for more than you paid for them, you realize a capital gain, or a capital loss when they are sold for less than you paid for them. Capital gains are now eligible for the reduced capital gains tax of 15% (less if you're in an income tax bracket less than 15%) if held for more than one year.

Answer 3

I agree with the previous answer.

Capital Gains can be long term or short term, but dividends don't really have classes.

Not all dividends are paid as cash.

Can you be more specific?

Answer 4

Dividends have no classes.