Taking Advantage Of 20% Dividend Yields With Safe Bulkers' Preferred Shares - Safe Bulkers Inc. (NYSE:SB) | Seeking Alpha

Taking Advantage Of 20% Dividend Yields With Safe Bulkers' Preferred Shares - Safe Bulkers Inc. (NYSE:SB) | Seeking Alpha: "Ticker Symbol Last Price (11/25/15) Call Price Coupon Rate Current Yield Earliest Call Date
SB-PB $16.55 $25 8.00% 12.08% 7/30/18
SB-PC $9.10 $25 8.00% 21.98% 5/31/19
SB-PD $8.95 $25 8.00% 22.35% 6/30/19
Each of the preferred shares series are cumulative, thereby allowing the quarterly $0.50 per preferred share dividend to accrue even if the company decides to stop paying dividends. This provides investors with an additional level of safety for two reasons. The first is that it helps secure the investor's claim on the expected distribution even in a rough market environment. More importantly, however, it also places the preferred shares dividend on a lower priority for being cut. Distressed companies are more likely to reduce or cut their common share dividends before abandoning the preferred share dividends, which they would eventually have to pay anyhow."



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