Cumulative Dividend

A limitation placed upon corporations ensuring the payment of preferred dividends before distributions are made to common shareholders.

If a company fails to make a dividend distribution to preferred shareholders with a cumulative dividend, they will be required to catch up the payment before any other distributions can be made to common shareholders.


Investment dictionary. . 2012.

Look at other dictionaries:

  • cumulative dividend — ➔ dividend * * * cumulative dividend UK US noun [C] ► FINANCE, STOCK MARKET a regular payment made to the owners of cumulative preference shares: »It is common that shares with a right to a cumulative dividend obtain voting rights if the dividend …   Financial and business terms

  • cumulative dividend — see dividend Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. cumulative dividend …   Law dictionary

  • cumulative dividend — cumulative dividend, a dividend that must be added to future dividends if it is not paid when due …   Useful english dictionary

  • Cumulative dividend feature — A requirement that any missed preferred or preference stock dividends be paid in full before any common dividend payment is made. The New York Times Financial Glossary …   Financial and business terms

  • cumulative dividend feature — A requirement that any missed preferred stock or preference stock dividends be paid in full before any dividend payment on common shares is made. Bloomberg Financial Dictionary …   Financial and business terms

  • non-cumulative dividend — Once a preferred dividend is passed in a particular period, the right to that dividend has passed though the preferred stockholder is entitled to his dividend in the next period before the common stockholders receive their dividend …   Black's law dictionary

  • dividend — div·i·dend / di və ˌdend/ n 1: the part of corporate net earnings distributed usu. periodically (as quarterly) to stockholders in the form of cash, additional shares, or property either as a set amount per share or a percentage of par value… …   Law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — a distribution of the profits of a company among its members or shareholders. Glossary of Business Terms A portion of a company s profit paid to common shareholders and preferred shareholders. A stock selling for $20 a share with an annual… …   Financial and business terms

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