What is the impact on the market price of preferred stock if the dividend payment is due and when it is paid? Suppose a company pays $5 as dividend every year 1- What is the market price now when the next dividend payment is due in one year? 2- What will impact on the market price of stock immediately after the next dividend is paid. Let's assume a 10% required rate of return for both cases. I believe there shouldn't be any impact on pricing because it is a simple case of perpetuity.