Cumulative preferred stock

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Cumulative preferred stock

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

Cumulative Preferred Stock

Preferred stock for which the publicly-traded company must pay all dividends. If a company misses a dividend payment for any reason, it still owes it to cumulative preferred stockholders. That is, all dividends that were "skipped" must be paid to cumulative preferred stockholders before any dividends are paid to common stock holders. This contrasts with non-cumulative preferred stock, for which stockholders must forgo dividend payments that are missed. Most preferred stock is cumulative preferred stock.
References in periodicals archive ?
75% Series A Perpetual Cumulative Preferred Shares at the rate of $0.
75% Cumulative Preferred Shares (CUSIP #29380T303) are as follows:
Given XL's unilateral flexibility in modifying the terms of the reinsurance agreement with Stoneheath Re as well as Stoneheath Re's reliance on XL to provide a significant portion of the preferred dividends via reinsurance payments, Stoneheath Re's non-cumulative perpetual preferred securities are rated equivalent to XL's existing cumulative preferred shares.

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