Alan Young

Agency-Backed Mortgage REITs at a Crossroads

Thank you for trying to clarify a very lucrative but mysterious sector. I've been puzzled by seeing different REITs, which I thought did roughly the same thing, going marked up and down in price on the same day. Now I begin to understand.

Agreeing with Croc, above, on everything... need more study of annual reports and quarterly conference calls, I guess, but even then, would I understand them without even more background study? I hope you will publish more analysis like this.

American Agency Mortgage: Huge Dividend REIT

I agree, good article about a great investment that the market has undervalued because of its limited track record.

@FranzSchubert: of course, no REIT can guarantee its dividend, because it pays a set percentage of current FFOs and doesn't keep reserves to stabilize dividends. But you knew that, so you weren't misled. I agree, the author might have been clearer about the dividend rate being based only on the last quarter.

I am long AGNC, NLY, and ANH.

On Aug 20 01:40 PM FranzSchubert wrote:

> The biggest problem with this article is that it says nothing about
> whether the AGNC dividend is sustainable at $1.50. Reading the quarterly
> reports (did the author do that?) might have led him to note that
> there were some fairly profits classified as non-recurring.

6 High Yielding Companies Boosting Distributions

Comparing the dividend performance of a corporation like DUK, where dividends are a discretionary (and tiny) fraction of cash flow, with those of REITs and BDCs, which are required to pay 90% of cash flow as dividends, makes no sense. The business models, and the strengths or weaknesses that might be inferred from dividend changes, are completely different. I suspect you have no idea what you are doing, but good luck.

Are High Yielding aMREITs Ready to Run?

Good article! I already own three of these, based on dividend-yield screening and cursory research, but you have added some nuance to my understanding.