The participating option of the preference shares issued entitles the Preference Shares upon
allotment to confer the right to an annual dividend of Rs.0.10 per share and in addition confer
a Participating Right to receive any dividend declared and paid to the Ordinary shareholders-( Advantage)
In the event the company sustain losses, no dividend will be paid to preference shareholders. - (Disadvantge)
The holder of the share is not etitled to a vote.- (disadvantage)
The preference shareholders get priority of compensation over ordinary shareholders in the
event of liquidation.
-(Advantage,) how ever SFL Is able to pay a good dividend against Rs.19/- plus annual EPS as per the latest financial results 2014/15 which shows in significant earnings from previous EPS Jumped 12/- to 19/-. the retained earnings has increase almost in 100% and reduced borrowings. one of the lowest PBV Which is around 1.20 . in that scenario SFL.N can trade 25 plus whil SFL.P Can trade 13 plus. The most important thing just investing SFL.P @ 10/- And if you get normal share dividend at least 1 rupee. You are earning than a fixed deposit . 1/10 *100 = 10% . Its a great return.GL