Preferred shares

Instead, preferred shares usually take precedence over ordinary shares[?] when it comes to the distribution of profits and the liquidation[?] proceeds of a stock corporation[?].

Preferred shares may have a declared dividend.

The preferred shareholders take precedence over common stock holders when dividends are issued. Preferred stock may also be cumulative. If a company does not declare dividends for a given time period then the preferred share holders are paid cumulatively for the missed period during the next payout.