dividends in 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 ?
One third of the 2017 remittances corresponds to collection of dividends in arrears of some GOCCs, such as the PDIC, Caap, SBMA and NPC.
They will serve as trustees until the company's annual meeting of shareholders in 2011 or until their respective successors are duly elected and qualified, or, if earlier, the date on which the full dividends in arrears on the outstanding Series B preferred shares have been paid in full and dividends thereon for the current quarterly dividend period have been paid in full or declared and a sum of money sufficient for the payment thereof set aside for payment.
One-third of the 2017 remittances correspond to collection of dividends in arrears of some GOCCs, such as the PDIC, Caap, SBMA and Napocor, according to the DOF.