Cumulative Dividends
From LawDepot Law Library
Definition of "Cumulative Dividends"
Cumulative dividends are dividends that accrue at a fixed rate until paid. If a dividend is not paid in a given year or period then it is carried forward and the shareholder would still receive those dividends in a subsequent year when the dividends are finally declared and paid. Any outstanding cumulative dividends must be paid before the common shareholders receive any payment.
