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Cumulative dividend
Practical Law UK Glossary 4-107-6030 (Approx. 3 pages)
Glossary
Cumulative dividend
A dividend that, if expressed to be payable on a certain date and is not paid on that date, "accumulates" as a debt owed to the shareholder until it is paid.
Unless their terms provide otherwise, the right to a dividend on preference shares is deemed to be cumulative (Henry v The Great Northern Railway Company (1857) 44 ER 858 and Webb v Earle (1875) LR 20 Eq. 556).
For more information on cumulative dividends and preference shares, see Practice note, Preference shares.