A dividend paid on cumulative preference shares, that the company is liable...

A dividend which accumulates if not paid in the pe... Add a comment

This is a feature that allows for unpaid dividends to accumulate if a company has missed a dividend payment. This usually occurs because of financial difficulties. If and when a company is in shape to pay dividends again, it will have to pay all back dividends before it can start again.

Dividends on preferred stock that accrue if not paid when due. Preferred cumulative dividends must be paid before dividends are paid to common stockholders. Also see arrears.

See Accumulated Dividend.

A limitation placed upon corporations ensuring the payment of preferred dividends before making distributions to common shareholders.