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cumulative dividend

 - 2 dictionary results
Financial Dictionary

Cumulative Dividend

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

Investopedia Commentary

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

See also: Common Stock, Dividend, Preferred Stock

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Legal Dictionary

Main Entry: cumulative dividend
see DIVIDEND
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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