While common stockholders are afforded certain voting rights, economic participation in the event of a liquidity event or declaration of dividends is subordinate to creditor and
preferred shareholder cash distributions.
Not exact matches
Einhorn, fund manager for Greenlight Capital, accused Apple of
cash hoarding earlier last week and is encouraging
shareholders to vote against Apple's proxy because he thinks proposition two will kill the option of Apple issuing
preferred stock.
Now share buybacks aren't necessarily a bad thing, and in fact are Warren Buffett's
preferred method for returning
cash to
shareholders — as opposed to dividends — because they give management more flexibility.
Buying back stock is, for example, Warren Buffett's
preferred way of returning
cash to
shareholders (rather than paying a dividend).
On June 10 SoftBank increased its bid to $ 21.6 billion from $ 20.1 billion and raised the
cash component of the deal for
shareholders by $ 4.5 billion, trumping Dish's bid and gaining support from Sprint's second biggest
shareholder Paulson & Co. which had previously said it
preferred Dish's bid.
«Proportion of free
cash flow (after
preferred dividends) that is paid as dividends to common
shareholders.
That is why I much
prefer dealing with real, live, breathing businesses that give some of their profits to
shareholders every ninety days in the form of a
cash dividend.
First, the indemnity payments offered by the government may not be enough to avoid companies from generating zero to negative EBIDTA, to offset investment and asset impairments, and ultimately to generate enough
cash for future investments and net income to continue paying dividends (which would be a severe blow particularly to
preferred shareholders).
If a company fails to fulfill its obligations to its
preferred shareholders, its common
shareholders will have no prospect of earning
cash flows on their investments, and therefore their shares — their pieces of paper — won't carry value.
The management has wisely bought back shares of the stock at severely depressed levels, and doesn't seem to get too carried away with regular buybacks,
preferring to return excess
cash to
shareholders in the form of special dividends (much
preferred to buybacks).
Naturally,
shareholders would
prefer to reinvest a business's earnings into more ownership of a business rather than see the
cash sit in the company's bank accounts for a paltry.5 % annual return.
That is why I much
prefer dealing with real, live, breathing businesses that give some of their profits to
shareholders every ninety days in the form of a
cash dividend.
In recent decades, share buybacks have overtaken dividends as a
preferred way to return
cash to
shareholders as there is more preferential tax treatment.
The research shows that, in addition to undervaluation, activists seek
cash - rich balance sheets, and over-diversified businesses, both of which are symptoms of the tension between managers who want larger fiefdoms, and
shareholders who
prefer that
cash be distributed out to them when returns drop below a threshold.
This brings up some important questions on investing, namely whether we
prefer management to allocate
cash into share buybacks or into dividend payments to
shareholders.
I hold accordingly... but for other individual
shareholders, it will depend on their portfolio & perspective: On average, event - driven investments do offer attractive risk / reward, but if you're itching to buy a high potential growth stock right now (for example), you may
prefer to raise some necessary
cash.
I
prefer cash myself... But Zamano's size may be a blessing: i) a
cash deal, even at a decent premium, wouldn't break the bank, or ii) an all - share deal mightn't present much difficulty either — for ZMNO
shareholders who
prefer a
cash exit, the impact of their selling might be quite limited in relation to an acquirer's market cap / trading volumes.
Time for a step - change... Overall, it's a pretty stable core business, so management needs to start milking it for
cash to return to
shareholders (via dividends / buy - backs), or else accelerate growth by ramping up its leverage & acquisition pipeline / spending (more acquisitions, bigger acquisitions, or both...)-- at this point, I'd still
prefer a bet on the latter.
«After extensive consideration and in light of the uncertainty associated with the causes and potential liabilities associated with these wildfires as well as state policy uncertainties, the PG&E boards determined that suspending the common and
preferred stock dividends is prudent with respect to
cash conservation and is in the best long - term interests of the companies, our customers and our
shareholders... We fully recognize the importance of dividends and intend to revisit the issue as we get more clarity.»
The thing is that as a
shareholder, I
prefer either to get some of the
cash distributed back to me, may be via a special dividend or share - buybacks, or I
prefer the
cash to be spent on projects that might multiply in value.
Simon is also prepared to offer Simon common equity instead of the
cash consideration, in whole or in part, as payment to those General Growth
shareholders or creditors who would
prefer to participate in the upside of owning stock in Simon.