Non-Cumulative Preferred

Non-Cumulative Preferred - Non-Cumulative Preferred is preferred stock that no pay to the holder of any unpaid, or omitted dividends. If the corporation chooses no pay dividends in a given year, the investor is to claim any of those forgone dividends in the future is lost. In the case the preferred shares are cumulative; shareholders are entitled to any omitted dividends. For example, let us assume ABC Company chooses no pay $1.10 annual dividend to cumulative preferred stockholders. In this case, the shareholders do not receive the dividends this year, but are entitled to collect this dividend at some point in the future.