The reduction in distributable reserves may, of course, affect the company's ability to pay future dividends.
Shareholders love them, because they mean that future dividends and profits will be spread over a shrinking equity base.
In other words, it is used to value stocks based on the net present value of the future dividends.
Lone Star also said the charge would prevent payment of future dividends on its common stock under its present loan agreements.
Whether it's called SEN or something else, a small investment with our kids pays massive future dividends.
But yesterday's agreement to sell preferred stock reduces the threat to the company's future dividends.
Once a company owned the stock for 46 days, it could hedge the risks and get the favorable tax treatment on all future dividends.
There are numerous assumptions that can be made about the pattern of expected future dividends.
You invest in the equity market to provide yourself with a stream of future dividends which will hopefully outpace inflation.
There is no guarantee that future dividends will match past dividends or even be paid at all.