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Cumulative Preferred Stock
A type of preferred stock where dividends accrue if not paid in a given year, and all accrued dividends must be paid before dividends can be paid on common stock.
Dividends
A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis.
Common Shareholders
Individuals or entities that own a portion of a company's equity through its common shares, giving them voting rights and a claim on a portion of its profits.
Payout Ratio
The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.
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