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11% Dividend Capstead Mortgage Continually Turns In Decent Results
- CMO pays an 11.2% dividend.
- It lost -$0.08 per common share in book value in Q4 2014.
- For FY2014 it gained +0.05 per common share in book value.
Is 11.3% Dividend, Annaly Managed Chimera Investment Corp. Better Than Annaly?
- CIM pays an 11%+ dividend.
- CIM is more diversified than Agency only mortgage REITs. This has led to its outperformance in the last two years.
- The CIM hedging examples indicate that CIM should see a small book value gain for Q4 2014.
Cheap Fuel Will Only Improve Swift Transportation's Already Improving Results
- SWFT saw 34.5% EPS growth in Q3 2014. It reports Q4 data after the market closes on January 28, 2015.
- Over the last five years it has seen 12.5% CAGR Total Revenue Growth and 23.4% CAGR Adjusted Operating Income growth.
- SWFT is predicting 25%+ EPS growth for FY2015; and it seems extremely likely to exceed that with the now dramatically lower fuel prices.
1.8% Dividend CSX Corp. Is Seeing Double-Digit Earnings Growth
- CSX saw a +5% revenue gain in Q4 2014 year over year.
- CSX saw a +17% EPS gain in Q4 2014 year over year.
- CSX's outlook cites strength ahead in Q1 2015 and FY2015.
- Analysis of possible weak areas tends to indicate that they are not as weak as many worried. Read further for more detail.
14% Dividend ARMOUR Residential REIT Should Surprise Many With Its Q4 2014 Performance
- ARR pays a great 14% dividend, although this could be in for a further cut with the still falling interest rates.
- ARR has already declared a $0.04 per common share per month dividend through March 2015 ($0.12 per common share for Q1 2015).
- ARR management bought back about 4.2 million of its own shares in Q4 2014. This indicates that the shares were very undervalued. They are more undervalued now.
- ARR likely gained book value in Q4 2014. Read more to get the details. ARR appears to be a huge value bargain.
1.8% Dividend Union Pacific's Great Growth Keeps Continuing
- For Q4 2014 UNP beat EPS estimates by +$0.10 at $1.61 per share versus an expected $1.51 per share. This was up +27% from Q4 2013.
- UNP grew its dividend year over year from $0.395 per share (split adjusted) in Q4 2013 to $0.50 per share in Q4 2014 (+26.58%) - as of July 31, 2014.
- UNP's stock price has risen 77% over the last two years.
- Operating revenues for FY2014 were $24.0B (+9.0% year over year).
Orchid Island Capital Paid A 16.2% Annualized Dividend For Q4, But Lost Book Value
- Orchid Island Capital pays a juicy 16.2% annual dividend. The current monthly dividend is $0.18 per common share.
- The book value fell from $13.27 on September 30, 2014 to $13.05 on December 31, 2014 (-$0.22 or -1.66%).
- For FY2014 the book value declined from $13.40 per common share on December 31, 2013 to $13.05 per common share on December 31, 2014 (-2.61%).
- Given the 16.2% dividend, shareholders still got a great return on their investment.
Bristol-Myers Squibb: 2.4% Dividend, Impressive Pipeline, Approval Coming Soon
- BMY ended a lung cancer drug (Opdivo) study early because it met its main goal.
- FY2016 sales from Opdivo are forecast to be about $1.7B (JPM's Chris Scott). This about an 11% increase to BMY's FY2014 estimated sales of $15.7B.
- BMY has an impressive pipeline that may make the 2.4% dividend an adequate reward for waiting.
6% Dividend Colony Financial Is A Steady Performer For Your Portfolio.
- CLNY raised its dividend about 2.8% from $0.36 to $0.37 for Q4 2014.
- CLNY's Q3 2014 Core Earnings covered the dividend nicely.
- CLNY is much less leveraged than many REITs. This should make it less risky in a worrisome market.
Exciting Times At 9% Dividend NorthStar Realty Finance May Mean Exciting Growth
- NRF pays a 9.7% dividend.
- NRF recently moved into the category of 75%+ hard real estate assets with 79%. This allowed it to join the MSCI US REIT Index.
- The new prestigious index should bring it more investment monies.
- The huge new growth in portfolio value without a huge growth in leverage should bring NRF a lot more profits.
The Oil Price Crisis: What Is The Economic Cost To The U.S.?
- The price of WTI oil has fallen roughly -$50/barrel in the last 6+ months.
- With US production at about 9 million barrels per day, this amounts to roughly a -1% drop in the US GDP.
- When you add in the price drops in "finished petroleum products", the drop in US GDP may be -2.6%.
Light Hedging In Q4 Should Translate Into Good Book Value Gains For 10.7% Dividend Payer Annaly Capital
- As of September 30, 2014, NLY had a net notional value of hedges of 48% of repurchase agreements (or $33.4B).
- Investment Securities (Agency MBS and Agency debentures) were $82.8B as of September 30, 2014. As a percentage of these, the hedging was even less.
- The 10-year US Treasury note yield has fallen by -24 bps in Q4 2014. This should provide good MBS value appreciation for lightly hedged NLY.
- On top of the above, NLY pays a great 10.7% annual dividend.
Q4 Looks Like A Better Quarter For ARMOUR Residential REIT
- ARR pays a 15.9% annual dividend.
- ARR may see an approximate +3.4% gain in book value in Q4 2014.
- ARR may also unfortunately see a cut of its dividend to $0.04 per month per common share from $0.05.
12% Dividend American Capital Agency Already Has A $0.20 Book Value Gain In Q4 2014
- AGNC pays a great 12% dividend.
- The book value has gone up by $0.20 (about 0.78%) through the first two months of Q4 2014.
- Using the eleven month book value gain in 2014 and the dividend for FY2014, the total economic return is about 18.5% for FY2014.
- The stock price would have to rise 15%+ to get to the book value as of November 30, 2014. There is upward potential.
19% Dividend Western Asset Mortgage Capital Is In Line For A Big Increase In Book Value In Q4
- WMC pays an approximate 19% dividend. Few companies can match that.
- With the -43 bps drop in the 10 year US Treasury Note yield quarter to date (December 17, 2014), WMC is trading at a discount of $1+ to book value.
- The ECB's proposed €1 trillion QE program should ensure that bond yields remain low for some time. This should safeguard WMC's book value.
- Meanwhile WMC has been expanding into other less interest sensitive areas such as CMBS. These changes should position WMC well for the future.
All Around The World The Sky Is Falling... Will It Hit You?
- Many significant world economies are in recession or are slowing significantly.
- The devastation in many of the world's stock markets' charts is even more striking.
- We may be at a critical point now or soon. European stocks may plunge further downward, or they may rally modestly.
- Whether Germany allows Draghi's 1€ Trillion QE plan to move forward soon may be the critical factor in deciding the next world stock markets move.
Insiders Are Buying 12.6% Dividend Invesco Mortgage Capital
- Insiders have increased their holding in IVR by 12.6% (24,631 shares) over the last six months.
- IVR had a so-so Q3; but it has had a total economic return of 15%+ year to date in 2014.
- IVR is moving away from interest sensitive investments into less interest sensitive investments such as commercial mezzanine loans. Read more if you are interested in IVR.
13.1% Dividend Agency RMBS Investor CYS Investments Is Likely To See A Large Pop In Book Value
- The 10-year US Treasury Note yield has fallen -41 bps from September 30, 2014 through December 12, 2014. This likely means a book value pop for CYS.
- CYS had produced a nearly 20% total economic return in 2014 through Q3.
- CYS pays a 13.1% annual dividend.
- CYS' strategy of medium hedging of a portfolio of Agency RMBS has been among the best in 2014.
- CYS' stock price is trading at a significant discount to its book value, especially its book value after the likely Q4 2014 pop.
China's Problems Impeding Rapid Growth -- Part 2: The Lack Of Clean Water
- China has only about 7% of the world's fresh water resources. Yet it has about 19.2% of the world's population.
- China has huge water pollution problems. 70% of its rivers and lakes are too polluted for human contact.
- China's water is situated more in the south while its industry and population are situated more in the north.
- Global Warming is slowly eroding China's water supply from the Himalayas.
- This article contains many more important issues. Read further if you have a serious interest in investing in China.
China's Problems Impeding Rapid Growth - Part 1: The Cost Of Smog
- China's GDP has averaged about 8.9% growth per year over the last twenty years.
- The smog level in China's ten most polluted cities is about 8 times the level of pollutants in their US counterparts.
- An MIT study found that the cost to the Chinese economy of added sickness and extra health care costs due to smog was about $112B in 2005.
- This may be nearer $224B per year at the end of 2014. This is a significant negative (-2.5%) for the Chinese economy of about $9.24T.
5.8% Dividend-Yielding Spirit Realty Capital Is Boring; But Its Strength And Stability Are Attractive
- SRC pays a 5.8% dividend ($0.665 per common share per year).
- The AFFO of $0.61 per common share through Q3 2014 indicates SRC should be able to cover the dividend easily.
- The FY2015 AFFO guidance of $0.84-$0.86 reaffirms a good dividend for FY2015.
- Its geographical diversity (48 states) and the industrial diversity of its tenants give SRC strength and stability.
How Much Have Low Oil Prices Hurt Chesapeake Energy? Is It A Buy Here?
- CHK could suffer unanticipated cuts in its revenues of roughly $1B in FY2015 due the oil price crash.
- NGLs prices usually roughly follow oil prices; and NGLs are hard to hedge.
- Natural Gas prices should remain firm or higher throughout the winter; and they may remain firm throughout FY2015.
- CHK's huge portfolio of great development properties make it a long term buy even in the face of possible short term losses (or small gains).
Ultra Low Oil Prices Should Mean Windfall Profits For FedEx Near Term
- FDX had a great Q1 2015 with operating income rising by 24% year over year.
- The recent fall in oil prices stands to give FDX windfall profits for the next two reporting quarters. Beats should translate into stock price appreciation.
- FDX is forecasting an 8.8% rise in volume for this Christmas season year over year.
9.7% Dividend MFA Financial Continues To Put Up Good Numbers
- MFA paid a Q3 2014 dividend of $0.20 (or about 9.7% annualized).
- MFA had a -1% book value loss for Q3 2014; but this was outperformance compared to most REITs.
- Between stock price appreciation and dividends issued, MFA has delivered a return of about 27.2% through the first three quarters of 2014.
It Pays To Shop At Burlington; And It May Pay To Own Its Stock, Too
- BURL is a turn around story that analysts believe will achieve profitability with the next two quarters.
- BURL won't likely stop there. It has an average analysts' next five years EPS Growth estimate of +33.67%.
- It sells attractive merchandise at very attractive prices (see picture at the bottom of the article).
- Management is making a lot of fiscal improvements. Barring a new downturn/recession, this stock should grow well.
13.7% Dividend Payer New York Mortgage Trust Has Outperformed, But Has That Made It Riskier?
- NYMT has produced a 23.1% total economic return so far in 2014.
- NYMT has had the same $0.27 per quarter dividend for 10 consecutive quarters.
- NYMT is so highly thought of by investors that it is trading at a 12.6% premium to its book value.
- However, there are some trouble spots. There are some areas where NYMT is getting undue praise and/or undue benefit. Any negative change could see a drastic price drop.
The Turnaround Story At North American Palladium Is Growing Legs
- PAL produced 20,000 oz. of palladium in October 2014. This is far up from 32,560 oz. in all of Q3 2014.
- PAL is projecting it will hit the low end of its guidance, or it will miss only slightly.
- PAL hit 4,500 tonnes of ore produced per day from underground mining on some days in October 2014. This is far up from 2,900 tonnes in Q2 2014.
- Q4 will either be the first profitable quarter for PAL in a long time; or it will come very close to being profitable.
- The combination of cyclical and secular growth in the palladium market should be very positive for PAL.
13.4% Distribution Breitburn Energy Closed QR Energy Deal But It Has A Growing Problem - Oil
- BBEP just closed its acquisition of QR Energy.
- BBEP raised its monthly distribution to $0.1733 (about $2.08 per year or 13.4%).
- However, BBEP had only a distribution coverage ratio of 0.78x in Q3 2014, which was surprisingly bad.
- Oil prices have weakened significantly since Q3 2014 to roughly $75/barrel for WTI; and they present a huge challenge to BBEP's distribution coverage ratio if they stay low.
Positive Catalysts Make Oversold Occidental Petroleum Worth A Look
- OXY beat on earnings at $1.58 for Q3, which was mildly positive in this tough oil market.
- It is about to "demerge" its CRC subsidiary. This, along with a bevy of other actions, should help it rid itself of its long term debt.
- It is technically oversold; and it is near a strong technical support area. Plus oil may be about to rally??
- Its new Al Hosn development is expected to reach 60,000 Boe/d by 1H end 2015. Its Permian developments are growing production quickly.
- OXY expects to grow production by 8%-10% in 2015. Plus it expects to have a pristine balance sheet, if it wasn't already great enough.
12%+ Dividend Payer AG Mortgage Investment Trust Keeps Turning In Great Results
- MITT has a 12.6% dividend that appears to be stable.
- MITT has gained book value in all three quarters of 2014 for a total of $1.19 per common share through Q3 2014 (about 6.2%).
- The total economic gain so far in 2014 is 15.6%. It may be over 20% for FY2014.
18.8% Dividend Western Asset Mortgage Capital Knocked It Out Of The Park In Q3
- WMC raised its dividend from $0.67 to $0.70 for Q3 2014 (18.8% annually).
- WMC outperformed on book value loss in Q3 2014 compared to its peers. It lost just -0.32% of its book value (from $15.31 to $15.26).
- WMC made a number of management moves in Q3 2014, which to this observer show good management sense.
- WMC on October 30, 2014 added two new members to its board in order to improve its overall governance and management.
13.1% Distribution Linn Energy Had A Good Q3, But It May Be In Trouble If Oil Prices Don't Rise. Sell?
- LINE has had distribution coverages greater than 1.0x for the last two quarters.
- LINE guidance indicates that the distribution coverage will sink significantly under 1.0x for Q4 2014.
- Current low oil prices, about 65% oil hedging in 2015, a $75/barrel WTI forecast by Goldman Sachs for FY2015, etc. spell trouble ahead for LINE.