cumulative dividend
cumulative dividend see dividend

Merriam-Webster’s Dictionary of Law. . 1996.

cumulative dividend
A dividend payable on preference shares (usually a fixed percentage of the nominal value of the preference share) which accumulates until it is paid.
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USA
A type of dividend which, if not paid when due, accumulates until the next time the corporation pays dividends (with the oldest deferred payment made first). Cumulative dividends are only payable on preferred stock (although not all preferred stock includes this right). Dividends on common stock are payable only if and when declared by a corporation's board of directors. Any unpaid cumulative dividends must be paid before any common stock dividends are paid.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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

  • 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… …   Investment 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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