dividend that was scheduled to be declared by a corporation, but instead was not voted for the time being by the board of directors. Dividends are sometimes omitted when a company has run into financial difficulty and its board decides it is more important to conserve cash than to pay a dividend to shareholders.
dividend that was scheduled to be declared by a corporation, but instead was not voted for the time being by the board of directors. Dividends are sometimes omitted when a company has run into financial difficulty and its board decides it is more important to conserve cash than to pay a dividend to shareholders. The announcement of an omitted dividend will typically cause the company's stock price to drop, particularly if the announcement is a surprise.
