Preferred stock that accrues unpaid dividends as a claim against the company, which must be satisfied before dividends are paid to common stockholders.

A type of preferred stock that offers the holder any unpaid dividends in arrears. These dividends accumulate and must be paid to the holder of cumulative preferred stock before any dividends can be paid to the common stockholders.

Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock

Preferred stock that allows companies to postpone dividend payments. Dividends accumulate if any are missed.

A stock having a provision that if one or more dividend payments are omitted, the omitted dividends (arrearage) must be paid before dividends may be paid on the company's common stock.

Preferred stock whose dividends may be postponed but not cancelled.

A preferred stock that has the provision that if one or more dividends are omitted, those dividends must be paid in full before dividends may be paid on the company's common stock.

A preferred stock that has a provision stipulating if one or more dividends are omitted (arrearage) because of insufficient earnings or any other reason, the dividends will accumulate until they are paid to shareholders. Cumulative preferred stocks have seniority over common stocks--that is, a common stock dividend cannot be paid until all cumulative preferred dividends are current.

Preferred stock that assures the owner that any omitted dividends on this stock will be made up before the common stockholders will receive a dividend. Omitted dividends on cumulative preferred stock are referred to as dividends in arrears and they must be disclosed in the notes to the financial statements. To Top