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Friday 30 October 2026 · Week 44Prices: 29 Oct close
21DC

Glossary · C

Cumulative dividend

A dividend that, if not paid when due, keeps accruing as an amount owed to holders. It must be paid before dividends on junior shares can resume. Most digital credit is cumulative.

Revised 22 October 2026 · Suggest a correction

A cumulative dividend keeps accruing even if the issuer's board does not declare or pay it. Missed amounts become "accumulated and unpaid" dividends. Holders keep a claim to them, and the issuer generally cannot pay dividends on junior stock, including common shares, until they are paid.

Which digital credit is cumulative (as of 22 October 2026)

Cumulative is not the same as compounding

Some cumulative series also charge a return on the unpaid amount. That is compounding unpaid dividends. STRC's unpaid dividends compound at the regular rate. STRF's and STRE's compound at a rate that steps up each period. Strive's SATS 8-K says no further amount accrues on unpaid regular dividends. The terms differ by series.

What it protects and what it does not

Cumulative status gives holders a claim. It does not force the board to declare dividends, and an unpaid dividend is not a default as it would be on a bond. Any remedies holders have for missed payments are set out in each certificate of designations. A cumulative dividend also improves the holder's position in a liquidation, because accumulated dividends are added to the liquidation preference claim.

What to check in the filing

  • The word "cumulative" in the dividend section
  • Whether unpaid amounts compound, and at what rate
  • Restrictions on junior dividends while arrears exist
See also: Non-cumulative dividend, Compounding unpaid dividends, Seniority, Liquidation preference.