robertc39

Will Royal Bank of Scotland Continue to Pay Dividends on Its Preferreds?

I am not that familure with the instruments MO and PM, what are they?


On Jan 23 09:18 AM dividendmachine wrote:

> I don't know why anyone would buya bank stock for adividend when
> they could buy MO or PM which are recession proof and are better
> businesses.Good article but the key to investing and marriage is
> the selection of the right spouse

Will Royal Bank of Scotland Continue to Pay Dividends on Its Preferreds?

If these are not convertable preferred how would they do that?


On Jan 23 09:19 AM rexob13 wrote:

> The latest infusion is simply used to convert the UK's preferred
> shares to common/ordinary, so... the UK will no longer be receiving
> a dividend. Could this be a prelude to cutting the didvidend on all
> preferreds? I hope not, but the argument this article presents and
> reader(s) concurred with is flawed as of the announcement of Jan
> 19.

Will Royal Bank of Scotland Continue to Pay Dividends on Its Preferreds?

I agree with with the analysis. If they suspend or eliminate the preferred dividend it would effect the standing of the bank and make it less attractive or possibly non saleable. Also how could they (gov't) suspend my (your) dividend and continue to pay their own. We are debt holders, they owe us the money, if they do not go bankrupt how can they eliminate the debt?