noncumulative


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Noncumulative

Applies mainly to convertible securities. Type of preferred stock on which unpaid or Omitted dividends do not accrue. Omitted dividends are, as a rule, gone forever.
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

noncumulative

Of or relating to a relatively unusual kind of preferred stock on which missed dividends do not have to be made up. Compare cumulative.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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The redemption will include all 5,400 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series D; all 29,900 shares of its Fixed Rate Noncumulative Preferred Stock, Series E; and all 10,000 shares of its Fixed Rate Noncumulative Preferred Stock, Series F; as well as the corresponding Depositary Shares, each representing a 1/1,000th interest in a share of the Preferred Stock.
Allstate Announces Redemption of Series D, E and F Preferred Stock
A quarterly cash dividend of $14.25 per share was declared on its Noncumulative Perpetual Series F Preferred Stock.
First Republic Bank declares cash dividends
Bank of America Corporation -- B1 (hyb) noncumulative preferred
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(3) (But for a limited, noncumulative withdrawal right, see Q 681.) If the primary beneficiary's power of withdrawal was created before October 22, 1942, the value of the unpaid proceeds is not includable in her gross estate merely because she possessed the power.
Settlement options-beneficiary's estate
For example, assume that pursuant to a recapitalization a stockholder transfers common stock to a family member and retains noncumulative preferred stock (a noncumulative distribution right under #2 above).
Estate freezes
- 5.80% Noncumulative Preferred Stock, Series C, payable October 22, 2018, to holders of record on October 12, 2018.
Citigroup declares dividends
Between 1983 and 1987, Rose gave all of her stock, except for 470 noncumulative preferred shares, to unidentified donees.
Third Circuit allows exclusion of asset from gross estate when only remainder interest had been sold
The Internal Revenue Service held in several private letter rulings that a noncumulative Crummey withdrawal power qualifies a trust as a section 678 trust as long as no transfer to the trust exceeds the beneficiary's withdrawal power.
(Use of trusts in S corporation succession planning.)(Small Business Tax Solutions)
The company has declared a quarterly cash dividend of USD13.75 per share (equivalent to USD0.343750 per depository share) on its series D noncumulative perpetual preferred stock (NYSE: FRCPrD); a quarterly cash dividend of USD14.25 per share (equivalent to USD0.356250 per depository share) on its series F noncumulative perpetual preferred stock (NYSE :FRCPrF).
First Republic Bank declares preferred stock dividends

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