Post by
CrazyTrader on Apr 25, 2024 2:17pm
Remember, Prefers "cost" more than debt... company can't
expense off Prefer dividends while they can expense off interest on debt to pay less TAX.
I'm guessing come 2026 the C's going to cost the company maybe close to 10% or $2.50/year/share in dividends.
Ya.... good chance they will be redeemed.
Comment by
SONOFFERGUS on Apr 25, 2024 4:45pm
Yes, CRAZY, companies are idiots for issuing prefs and should redeem them immediately! If you can't make sense of why pref shares exist, you should not invest in them. Full stop. Sell your holdings, be glad for your gains, buy a boat.
Comment by
SONOFFERGUS on Apr 27, 2024 6:49pm
Ah yes, gross up and credit is unknown to investors. JFC.