JSmith5
54 minutes ago
Duke Energy - which someone provided as an example - is 3.65% so all this is within the ballpark. It may be frustrating to wait for more cap, but you are still talking almost $30B per year organically. Also, as it stands now, juniors would get the first $2B, averaging a 6% dividend.
These aren't tech companies and don't expect to see mega earning growth each year going forward. Because of the heavy regulation that continues after release, I have always assumed that, if not utilities per se, they would be released with some kind of earnings restriction.
To make the stock attractive as possible I think the dividend will be in the 4-5% range.
Nats
Barron4664
1 hour ago
"THIS CERTIFIES THAT, for value received, the United States Department of the Treasury, with its principal
office at 1500 Pennsylvania Avenue, NW, Washington, DC 20220 (the “Holder”), is entitled to purchase"
These are the only words of importance in the contract. This sentence establishes a prohibited fee or charge related to the purchase of 1 million shares of senior preferred shares by Treasury. A violation of the Charter Acts of the GSE's and the Treasury's limited actions granted by Congress in HERA. Congress did not authorize Treasury to provide a "funding committment" upon which in consideration of such funding they may grant themselves 100,000 common shares/$1. Nor attach such funding as a LP on the sale of the seniors. All illegal.
JSmith5
2 hours ago
What might the numbers look like ?
I think you could back into it. Assume 5% dividend, 2/3 of net income distributed as dividends (which I have pointed out before is perfectly normal for a utility stock).
You have about $25B in combined income - so say $18B is distributed among the 1.8 billion shares. That's $10 a share. So the stock price would have to be $200.
Now this does not take into account the warrants, juniors and seniors, and so forth. All I am saying is that, unmolested by dilution, this is what I think would be in the ballpark.
I think that, pre conservatorship, these were largely old people utility-like dividend stocks - so makes sense from that standpoint.
Hope this helps.
Nats