According to recent filings they earned net investment income of $20 million for 6 months from dividends and interest less all expenses. The auction rate securities are paying only $1MM annual rate of dividends vs $13MM last year. So this is an annual rate of income of $39MM for common equity and they are paying out $95MM or $.14/mo. on 53.6MM shares. If the auction rate securities were earning the normal rate of $10MM the distribution actually earned is $30MM annually or $.56 or $.047/mo.
Why are they doing this crazy distribution policy? They are not bound. Tell me why I am wrong? and tell me why the dividend will not be cut
hi im wondering about this investmant myself im scouring the internet and theres not alot of info on them. My uncle who is in his retirement recomended it to me and i said id look into it hes retired and said its a safer bet and has a nice divedend almost 10 percent and he said wen it was ipoed people gobbled this thing up do u have ne other info on it thats not on the company website ? IM looking at Mo altria also as a divendend play and was comparing it to this.