noncumulative


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Noncumulative

Applies mainly to convertible securities. Type of preferred stock on which unpaid or Omitted dividends do not accrue. Omitted dividends are, as a rule, gone forever.

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.

noncumulative

Of or relating to a relatively unusual kind of preferred stock on which missed dividends do not have to be made up. Compare cumulative.
References in periodicals archive ?
418750 per depositary share) on its Noncumulative Perpetual Series A Preferred Stock (FRCPrA); USD15.
75 per share was declared on its Noncumulative Perpetual Series A Preferred Stock.
950% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series A, payable July 30, 2014, to holders of record on July 18, 2014.
Between 1983 and 1987, Rose gave all of her stock, except for 470 noncumulative preferred shares, to unidentified donees.
35% noncumulative preference shares series 8R, at 'BBB';
950 percent Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series A, which will be payable on July 30, 2015, to holders of record on July 20, 2015; a dividend of USD29.
800% Noncumulative Preferred Stock, Series C, payable April 22, 2014, to holders of record on April 11, 2014.
The preferred stock contained voting control, a $15 noncumulative dividend per share and $100 per share liquidation value.
781250 per share was declared on its Noncumulative Perpetual Series C Preferred Stock.
75 per share on its Noncumulative Perpetual Series A Preferred Stock (FRCPrA); USD15.
75 per share on its Noncumulative Perpetual Series-A Preferred Stock; a dividend of USD15.
950 percent Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series A, which will be payable January 30, 2015, to holders of record on January 20, 2015.