Cumulative Preferred (Noun)
Meaning
Preferred stock whose dividends if omitted accumulate until paid out.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued cumulative preferred stock to attract investors who wanted a predictable income stream.
- Cumulative preferred stock is often considered a more conservative investment option due to its guaranteed dividend payments.
- The holders of cumulative preferred stock were paid their accrued dividends as soon as the company's financial situation improved.
- As a result of the merger, the cumulative preferred stock was converted into common stock with a higher dividend yield.
- The investor chose to purchase cumulative preferred stock to ensure a regular income stream from her investments.