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What are Cumulative Preferred Stocks

Cumulative preferred stocks are guaranteed to receive the missed dividends when the issuer resumes paying dividends. During the suspension of dividends, the missed dividends accumulate. At resumption of dividend payments, the accumulated amount is paid out before any other class of preferred shares or common shares receive a dividend.

 

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Uploaded on January 10, 2020
Taken on December 10, 2019