Cumulative preferred stocks are a type of stock that provides investors with a fixed dividend payment that accrues over time. If a company misses a dividend payment, the accumulated dividends must be paid out before any common shareholders receive payments. Synonyms for cumulative preferred stocks include cumulative preferred shares, cumulative preferred securities, and cumulative preference shares. These terms are often used interchangeably and refer to the same type of investment. Cumulative preferred stocks are typically less volatile than common stocks, making them a popular choice for risk-averse investors. However, they also tend to offer lower returns than common stocks.