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Federated Investors, Inc. Message Board

  • Reall_Wild_Dreams Reall_Wild_Dreams Aug 25, 2008 9:31 AM Flag

    borrowing 475 million to pay special dividend

    Sort of sounds like they are giving themselves a bit of a bonus and borrowing money to do it.

    Thereby, giving the shareholders something today but saddling the company with debt for the future.

    A short sighted move.

    Can only mean padding the personal wallets.

    I was thinking of BUYING this stock to get the dividend and now I have to look at it more.

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    • Don't despair, TDG did the same thing and it's still going strong. Borrowing in this low environment CAN be smart.. not saying that it always is.

      The real question is when money market funds will be able to charge fees and start making some $$ for themselves and their stockholders. Any extra dividend, I gladly take.

    • Like to buy and simultaneously sell DIM covered call to capture dividend. Very low DIM option volume though, so concerned whether the options will be sold. Of course there is always the possibility of getting assigned in which case the loss is the commissions paid for three transactions, first to buy stock than to sell covered call than to pay commission once get assigned.

      All inputs are much appreciated.

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