Cumulative Dividend

Cumulative dividend is a preferred dividend provision under which unpaid scheduled dividends accumulate according to the security’s terms.

Why this matters to income investors

Missed preferred payments remain an obligation under the security’s terms.

How to use cumulative dividend in your research

Check the announced dates and the security’s payment terms before counting on a distribution. Receiving a payment does not by itself establish a gain, since the share price and any trading costs can change the result.

This material is general education and information, not individualized investment, tax, or legal advice.