Replies to post #452124 on Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

Only point is that back dividends and quick reinstatement of dividends is NOT required for preferred stock to have significant upside TODAY.

[contrarian bull]

I'm pretty sure the current wording of the junior preferred contracts says common stock dividends cannot be paid unless junior preferred get their full current dividends.

So yes - common shareholders can vote to not pay juniors dividends, but they would give up the possibility of common dividends.

Of course f&f could do stock buybacks instead which are basically the same as dividends, so...