They have enough money to pay the dividends. But because they fell below some value in their assets they can not pay the dividend. Should this value rise then the divi can be reinstated. Correct? Also will/would they pay the back dividends seeing how they have the money? Thanks in advance.
Because there are severe tax consequences if PHK doesn't pay out what it earned during 2008.
"In order to avoid the imposition of federal tax at the fund level, a closed-end fund must meet IRS requirements for sources of income and diversification of portfolio holdings, and must distribute substantially all of its income and capital gains to shareholders annually."
Hey,,, Step back Jack... Just trying to get a handle on this... Look at IAR, dropped the dividend and even though the stock is earning money it dropped like a car falling off a Chappaquiddick bridge. Everyone says it has no value...