When a company decides to declare a dividend the preferred stock holders get their dividend before the common stock holders. Also the preferred stockholder has a fixed dividend which does not vary according to how well the company is doing as does the dividend for a common stock holder. A preferred stockholder like a common has a share of the company according to how much stock is owned. However, only common stock holders have voting rights and they can vote on virtually everything. The preferred stock holder does not have a vote.