Definition of cumulative preferred stock in English:

cumulative preferred stock


  • A preferred stock whose annual fixed-rate dividend, if it cannot be paid in any year, accrues until it can and is paid before common dividends.

    • ‘Shares could also be issued, for example cumulative preference shares with a dividend calculated to reflect the amount of interest and principal received.’
    • ‘According to the notice, the redeemable cumulative preference shares are redeemable not later than 20 years from the date of allotment.’
    • ‘The nominal value of each cumulative preference share changed to 0.12 Euros.’
    • ‘If the dividend on a cumulative preference share is not paid, the payment is deferred and any arrears have to be paid prior to further ordinary dividend payouts.’
    • ‘Also in 2006, the cumulative preference shares purchase programme will be continued, and 525,000 shares are expected to be repurchased.’