Dividend checks which have been mailed to shareholders of record but not yet cashed. Funds are held until the check is paid, reissued or escheated to the state as abandoned property.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Dividends that have been sent by check to shareholders but have not yet been deposited into shareholders' accounts. Companies treat outstanding dividends as if they have already been paid; however, the funds remain with the company until either the checks clear or the funds revert to the state as abandoned property. See also: Declared dividend, Ex-dividend, Check hold.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved