Noncumulative preferred stock

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Noncumulative preferred stock

Preferred stock whose holders must forgo dividend payments when the company misses a dividend payment. Related: Cumulative preferred stock.

Noncumulative Preferred Stock

Preferred stock for which the publicly-traded company does not need to pay all dividends. If a company misses a dividend payment for any reason, it no longer owes the dividend to noncumulative preferred stockholders. That is, all dividends that were "skipped" are treated as if they never existed. Noncumulative preferred stocks are rare because they are unattractive to preferred stock investors.
References in periodicals archive ?
Tier 1 capital refers to capital that banks raise through issuance of common and noncumulative preferred stocks as well as their retained earnings, built up with profits from each fiscal year.
20 /PRNewswire/ -- California Federal Bank (NYSE: CAL) said today that its board of directors has declared regular quarterly dividends on each of its noncumulative preferred stocks.
Tier 1 capital signifies capital which banks raise through issuance of common and noncumulative preferred stocks as well as their retained earnings, built up with profits from each fiscal year.
LOS ANGELES, July 18 /PRNewswire/ -- California Federal Bank (NYSE: CAL) said today that its board of directors has declared regular quarterly dividends on each of its noncumulative preferred stocks.