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And if the preferred dividend is not paid, holders of the preferred stock are entitled to elect two directors.
Perini got into trouble with bad real estate ventures in the late 1980's, and its banks forced it to stop paying the preferred dividend in 1995.
"If they have the wherewithal to pay the common, that's a good sign because they have to pay the preferred dividend holders first," he said.
The company said it did not show a net per common share for 1970 because earnings failed to cover preferred dividend re quirements.
In May, a French court voided Schneider's original bid because the offer to holders of ordinary voting shares was 43percentt greater than that to owners of nonvoting shares, which enjoy a preferred dividend.
New legislation authorizing a backstop of the mortgage finance companies leaves it up to the Treasury secretary to decide whether to honor preferred dividend payments or to repay subordinated bondholders before the government, an S.& P. analyst, Victoria Wagner, said.
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After paying preferred dividends, income fell to 22 cents a share, from 58 cents.
The bank made $367 million in the last three months of 2012 after paying preferred dividends, down sharply from $1.58 billion in the period a year earlier.
BNY Mellon reported net income after paying preferred dividends of $28 million, or 2 cents a share, for the fourth quarter.
The first-quarter loss of $438.1 million before preferred dividends compared with a $240.7 million loss a year earlier, the company said.
ONE reason why I have always preferred dividends to earnings as a corporate valuation tool is the way companies report their profit figures.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com