A dividend that is not currently paid but.may be payable on a class of securities under certain circumstances. Dividends frequently accumulate for a fixed period to permit a company to retain cash to grow the business. Dividends may also be payable in full only in the event of a liquidity event (e.g., sale, IPO, or redemption) and accumulate until such time.
A dividend due to stockholders of cumulative preferred stock that has not been paid to them. Until the dividend is paid, it is carried on the corporation's books as a liability. See: Cumulative Preferred Stock