Can the dividend for a preferred stock increase or decrease over time?

Preferred stock usually has a fixed dividend, which means that the amount paid to preferred shareholders is predetermined and does not fluctuate over time like common stock dividends can. This fixed nature is one of the key features that distinguishes preferred stock from common stock. Preferred shareholders receive dividends at a specified rate, and these payments are prioritized over those made to common shareholders, especially in the event of liquidation.

While there are some situations where preferred dividends can be suspended or deferred, the actual rate remains fixed and does not increase or decrease due to company performance, shareholder approval, or market conditions. Thus, the correct understanding is that the dividend for preferred stock is designed to be stable and predictable, contributing to its appeal for investors looking for regular income.