After spinning off SNH the div was 80 cents...a few years later they bumped it to 84 cents while issuing 1/2 billion dollars worth of common at $13 a share (13X4=$52 a share). Then the financial crisis came along just in time so they were able to cut the dividend...without to much shame...down to 48 cents...then with the reverse split they bumped it back up to 50 cents...4X.50 = $2.00. Don’t get me wrong the boyz will cut again...just don’t see it anytime soon...at current price I hope to get a 15% return before year end...God Bless dem Boyz
I hate to burst your bubble, but if your goal is to buy for the dividend, unless you are lucky to buy low, how long will it take to make up the loss in price with the dividend alone?
It's sad to have been one of those suckers who bought at $52. They will never get their money back. I have a funny feeling it will be the same for the buyers of 11M shares not long ago.
Some folks here have been touting the -D shares as a hedge against the problem with the common. While there is some merit on the lower fluctuation , they are convertible to common, exposing them to the same risk. The idea that they will be redeemed at $52 is nosense. If they read the prospectus it states it would occur only on L-I-Q-U-I-D-A-T-I-O-N, or at the discretion of management. The chances of either happening is zero or below.