InvestorsHub Logo
Followers 240
Posts 12032
Boards Moderated 2
Alias Born 04/05/2009

Re: h_man_investor post# 189

Wednesday, 07/09/2014 8:17:31 PM

Wednesday, July 09, 2014 8:17:31 PM

Post# of 343
Aren't you forgetting something?

PFD Holdings, LLC was buying dollar bills for far less than a dollar.

An 8 percent rate on a $25 par preferred stock produces $2.00 in annual dividends. If an investor paid $8.33 per share, the cash rate of return would be 24 percent per year ($2.00/$8.33).

In my case, if the all of the dividends are paid, it would represent nearly twice my cost. I would still be owed par.

PFD Holdings, LLC is no different.

"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.