RE:RE:RE:DFN and DFwheeloffortune wrote: If it's the safest, why is preferred still trading at premium at 5.4% divy, while commons are trading at 15.4% divy with another dip? If it's safe, why don't the preferreds dump it and buy common instead for triple dividends? It's because the financials say preferreds are covered and most of the common divy is not. It's NOT SAFE! They will either have to sell off assets to continue the divy or slash the divy.
At the current operating income, the divy is unsustainable and the recent dip follows this sentiment.
There are some excellent articles about how Split Corps work available on the internet. Read one one or two and learn before spouting your nonsense.
The reason holders of preferred shares don't sell them and buy Class A shares instead is that they have different goals for their investments, different risk tolerances, etc. Yes, there are risks associated with Class A shares of split corps ... that is because they are highly leveraged. This leverage is also what attacts holders of Class A shares -- with higher risks comes higher reward.
Regardless of risk tolerance, if you want to play with Class A shares there is absolutely no doubt that LBS and DFN are two of the safest available right now.