If dividends are not declared by the board of directors in a particular year,a holder of cumulative preferred stock will never be paid that dividend.

Name: If dividends are not declared by the board of directors in a particular year,a holder of cumulative preferred stock will never be paid that dividend.
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Holders of cumulative preferred stock are entitled to receive unpaid dividends from previous years before any dividends are paid to common stockholders. These dividends accumulate until they are paid.

If Dividends Are Not Declared by the Board of Directors