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Cumulative dividend

A dividend Paid on Cumulative preference Share, 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 Terms: 12 Cumulative, Cumulative preferred, Liable, Obligation, Preference shares, Preferred shares, Preferred stock, Paid, Rent, Shareholder, Stock dividend, Share
Other Related Pages: Category: Stocks Starting With: C
Semi Related Terms: 562 CLICK HERE TO VIEW
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