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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
M2 EQUITYBITES-November 12, 2018-Kansas City Southern announces preferred and common dividends on 4% non-cumulative stock
Global Banking News-November 12, 2018-Kansas City Southern announces preferred and common dividends on 4% non-cumulative stock