The Motley Fool Discussion Boards Previous Page Industry Discussions / Real Estate Inv. Trusts: REITs URL:  https://boards.fool.com/cbl-suspends-dividend-to-pay-settlement-thanks-34168780.aspx Subject:  Re: CBL suspends dividend Date:  3/29/2019  5:56 AM Author:  BruceCM Number:  84597 of 85557 CBL suspends dividend to pay settlement... Thanks for the info.Per their 2018 1099-DIV, CBL paid about \$137.813MM to common shareholders, so two quarters of dividends at this rate would be about \$68.91MM, which I'm assuming they'll combine with about \$19.2MM out of C&CE (which at the end of 2018 they had \$57.5MM) to get the \$88.1MM needed for the settlement. Interestingly, for 2018, 82.36% of the common dividend was ordinary income and 100% of the preferred D and E dividends were ordinary income, meaning, if I've done the math right, \$159.042MM of all dividends was ordinary income for 2018. Just to rough this out....assuming this represents 100% of their REIT Taxable Income, and assuming this amount of taxable income remains the same for 2019 (yes, big assumption) and assuming the estimated \$88.1MM settlement is deductible from REIT taxable income, then CBL would have to distribute as dividends for 2019 a minimum of (\$159.042 - 88.1) X .9 = \$63.85MM. So hopefully, the \$44.892MM dividends to the D&E preferreds will be safe. Depending on their continuing operations, debt maturity schedule and the like, the D and E preferreds, at today's closing prices of \$9.34 and \$8.78, providing current yields of 19.7% and 18.9%, may be worth a look for those with suitable risk tolerance. I mean, 100 shares of the D preferred = \$934, and with an annual dividend of \$184.37, you'd break even in about 5 years :-)BruceM Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us