An accumulated dividend is a dividend that has not been paid to a holder of cumulative preference shares and is carried forward to the next accounting period. It represents a liability to the company and must be disclosed under the Companies Act if in arrears.
A preference dividend is a type of dividend that is paid to holders of preference shares and often carries preferential rights compared to common share dividends. This term is closely associated with cumulative preference shares, especially concerning unpaid dividends from prior periods.
