![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Tuesday, February 18, 2014 9:16:12 AM
Dividends are paid out of excess capital.
That would be a capital distribution. It is not the same as a dividend although it may be called a "special dividend". They are being treated differently by the IRS. I recently got one of this when the company I was invested in sold some assets. Taxation for that capital distribution -one time dividend- was treated differently by the IRS. A portion of what was paid came from the capital received and another portion came out of operating earnings. The company had to issue a document to all shareholders once they could figure out the ratio of distribution so that we could pay the right taxes. In my case, it was 68% capital distribution and the impact tax-wise was different had it been 100% dividends out of earnings. So again, dividends are a portion of the earnings alloted to shareholders. There is no obligation to pay them, ever. If they are not paid and accrue, they are owed. They can be paid in cash or shares or kind. And any decision regarding dividends comes out of the BOD every quarter. This is why it is important to have consistency and regularity.
I do not think the government -very general thinking- is as sanguine against preferred holders as it appears to be against common equity. Preferred holders were not and are not owners. Preferred shares are not equity and do not directly relate to the earnings' game (only when there none. Remember, higher or increasing earnings is irrelevant to preferreds). Common equity, on the other hand, is totally dependent on earnings and earning power and benefit the higher they get. So right there there is the seed of greed.
Because of all this, I do not think c-ship is an impediment for our dividends. Neither that Mel Watt may -at some point- see the light.
And I respect your opinion as well.
Recent FNMAS News
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 08:07:30 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 08:05:24 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM