dividends in arrears

(redirected from Dividend Arrears)

Dividends in Arrears

Dividends on preferred stock that are past due. Because preferred stock has guaranteed dividends, a company is legally required to pay the dividends before it makes any dividend payments at all on common stock. Dividends in arrears go to the current owners of preferred stock when they are paid; the person who owned it when the dividends originally should have been paid receives nothing. They are also called accumulated dividends.

dividends in arrears

Dividend payments on cumulative preferred stock that have been passed by a firm's directors. These dividends must be brought up to date before any payments are made to common stockholders. Any payments of dividends in arrears go to the current holders of the preferred stock regardless of who held the stock when the dividend was passed. Also called accumulated dividend.
References in periodicals archive ?
It says that on the sale of any surplus assets of the company, and after any dividend arrears are paid out, then 'any balance shall be distributed rateably among the holders of the preference stock and the holders of the ordinary stock'.
Dividend arrears on these preferred shares were $6,898,000 as of the same date.
It says that on the sale of surplus assets of the company, and after any dividend arrears are paid out, then 'any balance shall be distributed rateably amongst the holders of the preference stock and the holders of the ordinary stock.
Standard & Poor's views the elimination of the preferred dividend arrears positively.
As a result of the payment in 1995, 1996 and 1997 of dividend arrears on the Series 1 to 4 Second Preferred Shares of approximately $40.
Among the financial highlights for the Company during the year was the resumption of dividends and the substantial payment of dividend arrears on the Company's Second Preferred Shares, Series 1 to 4, in addition to completion of a financing of U.
31, 1994, the cumulative dividend arrears on the First Preferred Shares Series I were $19,896,000 (1993 - $16,715,000).