HL pays about 500M in preferred dividends every year. That's comes out right out of the common shareholders pocket.
Don't buy preferred stock though. The last time I checked the yield was less than 3%.
Shulman... Don't you mean $500,000 in preferred dividends, not 500 million ? According to the 2011 annual report, preferred dividend payments for the year were $552,000. For years 2010 and 2009, they were $ 13,633,000. That's higher, but still not 500 million.
Just wanted to bring it back into common shareholders focus. A lot of people scream that HL has 200M cash. But forget that preferred dividends are over 500M a year. Of course they don't have to pay them but then they accumulate and you will have to pay them on day in anyway.
Vitto Shulman from: investortalkroom.com
I've had the convertible Preferred B, as well as the common, for many years. Thankfully most my $ in the preferred. The preferred is near its all time high and is still paying 6.1%. It's been one L of a lot better investment than the common.