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Business Definition for: accumulated dividend
Dictionary of Finance and Investment Terms
accumulated dividend

dividend due, usually to holders of cumulative preferred stock, but not paid. It is carried on the books as a liability until paid.

See also cumulative preferred
Dictionary of Business Terms
accumulated dividend

dividend due, usually to holders of cumulative preferred stock, but not paid. It is carried on the books as a liability until paid.

See also cumulative preferred stock
Related Terms:
cumulative preferred

preferred stock whose dividends if omitted because of insufficient earnings or any other reason accumulate until paid out. They have precedence over common dividends, which cannot be paid as long as a cumulative preferred obligation exists. Most preferred stock issued today is cumulative.

cumulative preferred stock

type of stock whose dividend, if not paid in a given period, accumulate. All preferred dividends in arrears must be paid before common stockholders can receive distributions. Assume 10,000 shares of $10 par 8% cumulative preferred stock has not paid dividends from 1/1/2004 to 12/31/2007. At the end of 2007, the cumulative dividend not paid is $32,000 ($100,000 ¥ 8% ¥ 4 years).

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