I own 3,500 shares of MAA Pfd. A. I understand the dividend is $2.375 per year, paid monthly. This works out to $0.1979166 per month. I have only owned the stock for about 5 months, but I have noticed that the payment my broker credits is only $0.1979 per month. I know the difference only works out to pennies per month, but what if I had 350,000 shares?
Is the MAA paying only $0.1979 to the broker, or is the broker stiffing me for the difference? Perhaps the difference is made up at some time during the year.
MAAPrA pays $0.1979 monthly. You are correct in your calculation that 9.5% of $25 on a monthly basis is $0.197916... The systems of our transfer agent, however, can not handle infinite decimal places so the payment has been rounded to $0.1979 monthly. The administrative tracking that would be involved to true up full pennies is not practical. The difference on an annual basis is $0.0002 per share: in other words if somebody owned the entire $50 million of the Series A Preferred outstanding, the total annual dividend adjustment would be only $400.