Cumulative preferred dividend
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Cumulative preferred dividend is a protective feature on preferred stock that requires all past preferred dividends to be paid before any common dividends can be paid.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Cumulative preferred dividends. A protective feature on preferred stock that requires all past preferred dividends to be paid before any common dividends can be paid.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
