TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Oct 17, 2019 7:42am
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Post# 30239192
Preferred Shares terms/restrictions on Dividends to Common?
Preferred Shares terms/restrictions on Dividends to Common?I think management's plan is to increase cash flow and there by increase dividends.
I have a question. Would paying out more in Dividends than what is earned (profits) violate the terms of the Preferreds Shares? Would that be considered a reduction in capital??
As I understand, the company has sold off some assets and plans to sell more. Also I think they plan to reduce Cap EX. All this I think leads to incease in Cash Flow.
Again, Does the Preferres restrict the dividend payment to commons to a maximum of what earnings are, dispite what Cash Flow is?