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Non-Cumulative Dividends

Non-Cumulative Dividends

  • Term

    Main definition

  • Non-Cumulative Dividends

    Dividends that are payable to owners of a security (typically,Dividends preferred stock) at a specific point in time only (i) if there is sufficient cash available to pay the dividends after all company expenses are paid and obligations provided for, and (ii) as, if, and when declared by the board of directors. If cash flow is insufficient for any reason, the security owners will not receive dividends with respect to that time period and will have to wait until the board of directors declares dividends in the future.

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