A dividend paid on cumulative preference shares, that the company is liable for in the next payment period if not satisfied in the current payment period (i.e. the dividends accumulate). Unlike a dividend on common stock that the company can pay out to shareholders if they want, dividends on cumulative preferred shares are an obligation regardless of the earnings of the company. The unpaid accumulated preferred stock dividends must be paid before any common stock dividends are.
Related information about cumulative dividend:
- Cumulative Dividend Definition | Investopedia
A limitation placed upon corporations ensuring the payment of preferred dividends before distributions are made to common shareholders.
- What is cumulative dividend? definition and meaning
Definition of cumulative dividend: A dividend paid on cumulative preference shares, that the company is liable for in the next payment period if not satisfied in the ...
- Demystifying the VC term sheet: Dividends | VentureBeat
Feb 28, 2011 ... With a non-cumulative dividend, if the Board of Directors does not ... With a cumulative dividend, the dividend is calculated for each fiscal year ...
- Cumulative Dividend Definition - What is Cumulative Dividend?
What is Cumulative Dividend? Find out right now with a helpful definition and links related to Cumulative Dividend.
- What is a Cumulative Dividend?
A cumulative dividend is a type of dividend that may carry a deferred payment for a period of time. During the period when dividend payments are not issued, the ...
- Cumulative Dividend Feature financial definition of Cumulative ...
A requirement that any missed preferred or preference stock dividends be paid in full before any dividend payment on common shares is made.
- What is cumulative dividend preference? definition and meaning
Definition of cumulative dividend preference: Right of a cumulative preferred stock (cumulative preference shares) holder to receive the current as well as unpaid ...
- Cumulative Dividend: Definition from Answers.com
Type of stock whose dividends, if not paid in a given period, accumulate. All preferred dividends in arrears must be paid before common stockholders can.