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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by pinecone11on Feb 10, 2012 7:28pm
259 Views
Post# 19518989

RE Goodbye to dividends

RE Goodbye to dividends

Now ask yourself this: what investor (in the future) will lend money to YLO on a preferred offering without expecting a dividend in return?

 

None. If they ever issue shares again they will resume paying dividends on the common shares and make up the unpaid dividends on the preferreds. But that sentence begins with the word "if". There is no guarantee that they will ever issue shares again.

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Where does anyone get the idea that corporate YLO will ever have an interest in paying dividends again on either common or prefered shares? The dividends on commons were a holdover from income trust days when the units were marketed to retirees as a dependable source of monthly income. IMO, you can kiss your divvies goodbye forever.

 

 

 

 

Bullboard Posts