Cumulative Dividend
Unpaid preferred dividends that keep accruing and must be paid before any distribution to common stock.
Definition
With a cumulative preferred, dividends not declared in a given period are not lost: they accumulate in arrears and must be paid before the company can distribute any dividend to common stockholders. With a non-cumulative preferred, by contrast, skipped dividends are forfeited with no claim. The difference is substantial: cumulative terms offer better contractual protection, but the real protection depends on the company surviving — arrears do not earn interest and are not adjusted for inflation. Of Strategy's preferreds, STRK and STRF are cumulative; STRC and STRD are not.
In Context
STRK is cumulative at 8%; if Strategy skipped a quarter, that $2 per share would remain owed until paid.
Related Terms
Mentioned in
Explore more on SatsIntel
From the concept to the real dataBTC-backed preferreds
Fixed income with Bitcoin exposure. STRK, STRF, STRC, STRD and SATA.
Ver sección →Treasuries directory
Companies applying this concept on their balance sheets. Holdings, mNAV and live ranking.
Ver sección →Spot Bitcoin ETFs
The 12 SEC-approved spot ETFs. Daily flows, fees and comparator.
Ver sección →More glossary terms
60 definitions from the corporate Bitcoin ecosystem: protocol, metrics, regulation.
Ver sección →Read this term in Spanish: versión en español →
Corporate Bitcoin, explained every week
Definitions, data and analysis on treasuries, ETFs and preferreds in your inbox. No spam.