Cumulative preferred stock means that the preferred stockholders have a right to a certain dividend every year.

Name: Cumulative preferred stock means that the preferred stockholders have a right to a certain dividend every year.
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Cumulative preferred stock entitles the preferred stockholders to receive any unpaid dividends from prior years before common stockholders receive any dividends. Therefore, they have a right to a certain dividend every year which accumulates if not paid in any year.

Cumulative Preferred Stock Means That the Preferred Stockholders Have a Right