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

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Dividends are scheduled to be paid on 30 May 2014 at the rate of 5.5% on the 11% cumulative preference shares and 2.75% on the 5.5% cumulative preference shares, to preference shareholders on the register at the close of business on 2 May 2014.
The company also declared an interim dividend of GBP0.050 per share on its 10% cumulative preference shares.

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