What is the meaning of Cumulative Preferred?

Cumulative Preferred is a class of preferred stock having a provision that if dividends are omitted — due to poor earnings or other factors — the resulting obligation must be met before dividends may be paid on the company's common stock. Most preferred stock issued today is cumulative.

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APABarry Goldsmith. (2010). cumulative preferred. Retrieved September 24, 2026, from http://smartdefine.org/cumulative_preferred/definitions/1151245
ChicagoBarry Goldsmith. 2010. "cumulative preferred" http://smartdefine.org/cumulative_preferred/definitions/1151245 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, cumulative preferred, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/cumulative_preferred/definitions/1151245>.
MLABarry Goldsmith. "cumulative preferred" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/cumulative_preferred/definitions/1151245>
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