Accumulated Dividend


Accumulated Dividend

A dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder. Accumulated dividends are the result of dividends that are carried forward from previous periods and shareholders of cumulative preferred stock receive dividends before any other shareholders.

Preferred stock can either be "non-cumulative", which is traditionally the case or “cumulative" when it comes to dividends. Non-cumulative shares are entitled to dividends only if dividends are declared. Some investors may want a guaranteed return on a preferred stock. A cumulative preferred stock allows the investor to earn dividends regardless of the company’s ability to pay them immediately or in the future. In some instances, when some companies are not in a financial position to pay a dividend during a certain year, accumulated dividends are created. These dividends must be paid before any other dividends can be paid.


Investment dictionary. . 2012.

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  • accumulated dividend — A dividend that has not been paid to a holder of cumulative preference shares and is carried forward (i. e. accumulated) to the next accounting period. It represents a liability to the company. The Companies Act requires that where any fixed… …   Big dictionary of business and management

  • 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

  • Dividend — A dividend is a portion of a company s profit paid to common and preferred shareholders. A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5%. The New York Times Financial Glossary * * * dividend div‧i‧dend …   Financial and business terms

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  • dividend in arrears — accumulated dividends on cumulative preferred stock that are deemed payable to the current holder. Bloomberg Financial Dictionary …   Financial and business terms

  • dividend — Synonyms and related words: accrued dividends, accumulated dividends, allotment, allowance, avails, balance, big end, bigger half, bit, bite, bonus, box office, budget, capital gains, carrot, cash dividend, chunk, cleanup, clear profit,… …   Moby Thesaurus