A cumulative dividend is a preferred stock dividend that accrues over time at a stated rate even if the company does not declare or pay dividends, and the unpaid amount must be paid (typically before any common dividends, often at a liquidity event) when distributions are made.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
