Explore commonly used personal finance terms.
Accrued dividend is the portion of a dividend earned but not yet paid to the shareholder. This occurs when dividends are declared but have a specified payout date in the future. It is particularly relevant for preferred stocks, where dividends are cumulative. Accrued dividends are recorded in financial statements as assets for the shareholder and as liabilities for the issuer, providing insight into expected income and aligning dividend payments with financial records.
