If the dividend is cumulative who gets the deferred dividends? Is it the shareholder at the date it should have been paid or the current shareholder? I was going to jump in Cyccp a about a year ago and they were behind about 3 years of dividends and it was only trading at $3.00 with a $10 par value. So basically I just needed this company to survive, but I wasn't sure who would get the dividend.
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If the dividend is cumulative who gets the deferred dividends? Is it the shareholder at the date it should have been paid or the current shareholder? I was going to jump in Cyccp a about a year ago and they were behind about 3 years of dividends and it was only trading at $3.00 with a $10 par value. So basically I just needed this company to survive, but I wasn't sure who would get the dividend.
That didn't really answer the question. I had a few on my laptop when I was researching it about 6 months ago, but I couldn't find the answer so I didn't buy any of them. My laptop got fried and didn't want to spend the time looking again unless I would be the one to receive the dividend. I don't really know a ton on preferred shares and don't know if the ex date is when they announce they're catching up on the dividend or if it's the date that they should have been paying the dividend.
I'm sure there is more risk involved. The shares don't trade at a fraction of the call price without a reason, but if the company survives and you get all the back dividends with the call price it's a gold mine.
Take the cyccp example above. Trading at 30 percent of the call price and roughly 10 quarters of dividends @ $.15 behind. That's a minimum 500 percent gain.
That didn't really answer the question. I had a few on my laptop when I was researching it about 6 months ago, but I couldn't find the answer so I didn't buy any of them. My laptop got fried and didn't want to spend the time looking again unless I would be the one to receive the dividend. I don't really know a ton on preferred shares and don't know if the ex date is when they announce they're catching up on the dividend or if it's the date that they should have been paying the dividend.
I'm sure there is more risk involved. The shares don't trade at a fraction of the call price without a reason, but if the company survives and you get all the back dividends with the call price it's a gold mine.
Take the cyccp example above. Trading at 30 percent of the call price and roughly 10 quarters of dividends @ $.15 behind. That's a minimum 500 percent gain.