Lots of reits paying dividends with shares.
If BDCs can do it you can bet ACAS will pay its dividend with share issuance.
ALD cracked $1 mark this morning. ACAS will soon get there too.
Perhaps but they can't issue new shares to pay the dividends. This would not deflate the taxable income as issuing new shares and sort of selling them in exchange for the dividend would be considered as a taxable income.
They can do it only with existing shares, owned by ACAS, which of course would be very different.
It would make sens, for example if they bought shares now at a price barely higher than the dividend, and distribute these shares to shareholders later, when the price has apreciated.
>> $300 millions and pay it with USD to the shareholders to avoid breaching their tax covenant
Nope .. they can do that with stock, cash, or a combination of both.
There was a side discussion about making sure that if they do elect to make a stock div distribution, that they marry that with enough cash to cover the taxes.
You touted yourself as a professional writer yet you continue to post dribble.
Please, announce your last post and hold that massive ego high in the air and keep you word.
Just 6 months ago you trashed a poster that questioned the divident. You have no credibility.
Excuse me. But 6 months ago I believed in mgmt's credibility inasmuch as they reiterated the dividend 3x.
Are you saying that after mgmt breached its duties to shareholders I should just go along and believe in mgmt now?
Perhaps it is you who is diluded, in denial.
All I can say is I sold all my shares after mgmt breached its shareholder duties and am mightly glad I did. Perhaps all of you that held through should have learned that simple rule that when mgmt bends you over, you sell w/o question ASAP.
What is the use of paying a dividend with shares? That is not a real dividend, it is a fractional stock split that gets you nowhere.
Lets say you have 100 shares and they give a dividend of 0.1 shares per share. Then you have 110 shares, but at a reduced price reflected by the fractional split, so you are at the same place as before.
I don't see how a stock dividend would meet the requirements for distributing income.
Stick a fork in this puppy, it's done. It isn't even worth paying a commission to close out my position.
The exact same argument is made for a cash DIV. They reduce the books by the payout, making the company worth less (hence the stock price should drop when it goes Ex-Div)
So, not really any difference except you can't pay the bills with shares.
everyone seems to be worried about the dividends. i dont care much for them at this point. i only care that acas will survive this mess so i can recoup my $14k investment. just when you think it has hit bottom it manages to find itself in a new low.
at least its happening to all financial stocks not only to this one, this relives some of my
anxiety. i wonder if these new lows have anything to do with the lawsuits. anyone know any details regarding this matter?
ACAS needs to buy and sell assets on a regular basis. That is most of the business structure and the major share of revenue flow.
The only consequential activity for ACAS in the last 6 months has been ...what? They did obtain at least half the financing they needed in Oct and made adjustments accordingly by reducing payroll a closing some offices.
There is not a great future at this point for 'private investment' type operations....no money flowing... means no income.
What would you give for those prospects?
I said if they can do it they will do it.
They have no more loyal shareholders left. They all bailed after eliminating their dividend.
Today's shareholders are mostly traders just playing day to day games or speculative shareholders that haven't quite realized the bank situation is so bad that they became bagholders for a ride down a very long hill.