Where Is Preferred Stock On Balance Sheet

This means that should a company issue a dividend but not actually pay it out, that unpaid dividend is accumulated and must be made in a future period. It is also important to note that preferred stock takes precedence over common stock for receiving dividend payments. This means that a share of cumulative preferred stock must have all accumulated dividends from all prior years paid before any other lower-tier share can receive dividend payments. Convertible preferred stock can be converted into common equity after a specified date. On the other hand, several established names like General Electric, Bank of America,...