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How to Calculate Cumulative Dividends Per Share

By Motley Fool StaffUpdated Apr 29, 2025 at 11:06 PM

Key Points

  • Cumulative preferred stocks ensure skipped dividends are paid before common dividends.
  • Calculate owed dividends by annual rate x par value, divided by quarters, multiplied by missed payments.
  • In suspensions, share provisions might include board seats or increased dividend rates post-delay.

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