While there is no guarantee against a dividend cut, one thing is certain; with perferred stocks the dividend will be paid unless the company goes out of business.
RNP is not a pure preferred stock play. The common stock held in RNP's fund might be vulnerable to dividend cuts that could be passed on to fund shareholders.
For the above reason, anyone owning RNP should do their "own" research into where they have put their money. Don't trust anything that you come across as being FACT unless you personally have followed up with your own research.
Getting information from a message board may be a good start but it should be followed up, know the source.
One thing is certain about RNP dividend...it has been declared through March '08.
Any quack coming to this board chirping like Chicken Little that the sky and RNP's dividend is falling best have supporting facts if they expect to be taken seriously.
I expect next month to view RNP's annual report...
Prelude to dividend cut; liquidity crunch cause trade imbalance of AMPS, raising cost of leverage.
Just when things were starting to look go; lower rate on my margin account, some of RNP's holdings increased dividend.
Please tell me what you think about this article.
Does this mean we are likely to see a 20% reduction in RNP shares? I recognize that holdings in Citigroup are only a portion of RNPs holdings. But other large banks are in the same boat. How much total does RPN hold of high risk (formerly known as large, solid, stable, reliable) US banks and other high risk financial institutions?
I assume preferred shares will pay dividends until bankruptcy proceedings start. And, it's likely someone would step in and buy what's left of Citi for pennies. But a large part of RPN's investment in Citi shares could go to zero if Citi has leveraged their large holdings of junk CDOs. I don't know how to find that out. Maybe the Freedom of Information Act could help someone get in and access the books.
Your interesting and valuable thoughts, and those of all on this board, are greatly appreciated.
You come to this RNP board with your "MEANINGLESS" whine, in a stingy manner...what is whine with out cheese.
You say citigroup down grades a "ton"...what does that mean??!?! That you're lazy, you trying to smear the entire sector with one broad brush stroke.
jc, go get the cheese to go with your wine. Come back with the areas citigroup down graded, it was NOT the ENTIRE REIT sector. Do some "MEANINGFUL" RESEARCH and connect the downgrades of C to the holdings of RNP.
If you can't meet these demands then take your LAZY 'chicken little' A$$ to another board where your LAZY comments won't be challenged.
"...citigroup downgrades..." BAAWWWwww HHAAAaaa haa; like citigroup has their own house in order, "B"illions of dollars in loses, their dividend being threatened, the CEO outsted, selling off assets and a large part of themself.
Am thinking, wouldn't RNP reduce the capital gain at the end of the year before they cut the dividend? Another way of saying this. wouldn't the capital gain decline before the dividend. Any commets would be greatly appreciated.