iv've been confused about this for some time now...

Let's say there's this preferred stock, initially offered at 100 pesos, promising 5% cash dividend per annum. Then i buy the preferred stock at 110 pesos...then a few weeks later, it goes down to 99 pesos.

At the payment date, do i get

(100 * 0.05) = 5 pesos,
(110 *0.05) = 5.5 pesos, or
(99 * 0.05) = 4.95 pesos?



Ang impression ko is that the dividend rate is based on the initial offer price...which makes it a bit confusing for buyers who didn't buy during the initial offer period, wherein the price would be different.