Accrued dividends are a term used to describe the dividends that a company board has declared but has not yet been paid out to shareholders. Other synonyms for accrued dividends include accrued income, accumulated dividends, and earned but unpaid dividends. This type of dividend is considered a liability on the company's balance sheet and is subject to payment once the dividends are declared by the board. Investors and business analysts use accrued dividends as a measure of a company's financial strength since it represents the company's obligation to its shareholders. Accrued dividends are a critical element of a company's financial health and help to determine the rate of future dividend payouts.