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  • When Will Annaly Capital Management Change Its Ways? [View article]
    I think compensation based on a percentage of dividends paid + book value change is a great way to incentivize management to be in line with shareholders. I value mREITs based on these metrics, companies already frequently report them, and it grows with market cap (only if they do accretive secondaries). It might incentivize them to do share buybacks if they can grow book value and pay more dividends.
    May 7, 2015. 07:30 PM | 2 Likes Like |Link to Comment
  • Apollo Residential Mortgage Should Have Everyone's Attention [View article]
    I sold AMTG back in Sept 2013 when they cut their dividend from .70 to .40 and moved it into WMC, which has done slightly better than AMTG since then. It is a tough call for putting AMTG in best of breed status. They have been doing well, but they certainly didn't hold it together in the spring/summer of 2013. Then again, no company did but NYMT. I see AMTG as about equal with MITT.
    May 7, 2015. 05:50 PM | Likes Like |Link to Comment
  • New York Mortgage Trust: They Can't All Be Winners [View article]
    Thanks for the article, I too am staying long and may be looking to pick up more shares as the yield finally passed 14% this morning. There was one thing from the earnings press release that caught my eye that Ill mention:
    "In recent quarters, the Company has increased its capital allocation to distressed residential loans, as management believes that the current risk-adjusted returns on these assets are more attractive than the current risk-adjusted returns on its other targeted assets. As the Company continues to expand its distressed residential loan portfolio, it expects the net portfolio interest margin to trend downward, with the impact of lower net margin being partially offset by a slight increase in leverage."
    Just something to keep on the radar, look out for lower NIM and higher leverage. It may not effect earnings as they like to sell these for profit.
    May 6, 2015. 10:15 AM | 1 Like Like |Link to Comment
  • New York Mortgage Trust misses by $0.05 [View news story]
    I liked Steven Mummas explanation that its sales of distressed loans don't always coincide with quarterly cut-off dates because they are trying to get the best pricing. I calculate that even with only earning .21 in Q1 and paying a .27 dividend, they still have .31 a share extra earnings from the past year to pay future dividends with. As Steven Mumma said "management focuses on earnings generation over a twelve month period" and this last 12 month period has still been phenomenal even with an earnings miss in Q1. Wish it would have been a better quarter, but book value is still up from a year ago and full-year earnings more than cover the dividends. Staying long NYMT.
    May 5, 2015. 05:09 PM | 7 Likes Like |Link to Comment
  • These HealthCare REITs Are Ready For Buying After Up To A 20% Pullback [View article]
    I recently added to OHI @36.35. Long VTR, HCP and OHI and hoping to hold for decades and DRIP. Looking to add into WPC or OHI if they go down further.
    May 1, 2015. 12:29 PM | 2 Likes Like |Link to Comment
  • MORL March Dividend To Bring Yield To 24%, Yellen Holds The Key To The Future [View article]
    @ seatleview - would also be nice to see how this big month dividend capture strategy fares if you use the collected dividends to reinvest using this strategy vs a buy, hold, and DRIP plan. Those small months might add up over time in MORL.
    Apr 26, 2015. 06:18 PM | 1 Like Like |Link to Comment
  • MORL March Dividend To Bring Yield To 24%, Yellen Holds The Key To The Future [View article]
    @ seattleview - so far it seems to be a non-random phenomenon. You buy the first Friday of the big month dividend after the jobs number comes out (or the Thursday before the job number if the jobs number comes on a Friday the stock market is not open), and then you sell after the dividend is paid on the next Friday that comes along, which is before the FED meeting that happens the next week. Reasons it works are perhaps how people trade mREITs around their ex dividend days and how calm the interest rates tend to be in that time period after the jobs number and before the FED meeting.
    @ Darren - The bid/ask spread is important, thanks for mentioning it. The new platform Robinhood has free trades and does give you a tax form, although I haven't seen how good or accurate they are. They do use the same clearing house as Tradeking (Apex) which I do have experience with and although it has been slow to give you the final corrected tax form (end of march the last few years), at least its been accurate. I haven't used this strategy yet, but historically it would have been better than my buy and hold strategy on MORL. Missing the 2013 share price drop would have been awesome.
    Apr 26, 2015. 06:11 PM | 1 Like Like |Link to Comment
  • ETN Showdown: Is MORL Overvalued? [View article]
    discount to book seems to be mostly a factor of how the market thinks this stock will be affected by a rate rise. From your analysis, it seems that if MORL is trading at book value, the market thinks a rate rise will be about neutral for MORL. Only by digging into each stocks holdings can you find out if this generalization is true, but it gives me more confidence MORL wont be as damaged by a rate rise as most assume.
    Apr 25, 2015. 05:35 PM | 2 Likes Like |Link to Comment
  • MORL March Dividend To Bring Yield To 24%, Yellen Holds The Key To The Future [View article]
    @ SeatleView: See previous comments in this article for the back testing and rationale debate on the large month dividend capture strategy. Its worked over time
    Here are the numbers:
    Buy 4 Jan 2013 @ 26.88, sell 25 Jan 2013 @ 27.42 +.54, div 1.3195
    Buy 5 Apr 2013 @ 31.61, sell 26 Apr 2013 @ 31.11 - 1.50 div 1.3213
    Buy 5 July 2013 @ 19.69, sell 26 July 2013 @19.63 - .06 div 1.1045
    Buy 4 Oct 2013 @19.82, sell 25 Oct 2013 @ 20.64 +.82 div .7938
    Buy 3 Jan 2014 @ 19.57, sell 24 Jan 2014 @ 19.86 +.29 div .8072
    Buy 4 Apr 2014 @ 21.96, sell 25 Apr 2014 @ 21.54 - .42 div 1.0129
    Buy 4 July 2014 @ 22.66, sell 25 July 2014 @ 22.11 -.55 div .9642
    Buy 3 Oct 2014 @ 20.41, sell 24 Oct 2014 @ 20.76 +.35 div .9916
    Buy 2 Jan 2015 @ 21.58, sell 23 Jan 2015 @ 20.09 -1.49 div .9490
    Buy 2 Apr 2015 @ 20.99, sell 24 Apr 2015 @ 20.47 -.52 div .8858
    total price loss 2.54, dividend paid 10.15, total gain: $7.61 per share

    Id love to have time to dig through the holdings of each component of MORT/MORL and get a better answer as to how at risk MORT/MORL is to a rate increase. Your points above would be good to know. I have an idea as to how each holding would benefit or be hurt by a rate rise, but I would need to dig further to see if that idea has a good foundation to it. Some of them are not very cut and dry like NRZ (benefit from rate rise). But based on my initial look, MORT/MORL looks balanced as to how it is effected by a rate rise. We are talking a long term rate rise as well as short term rate rise. It all changes if its just a short term rate rise, which is entirely possible.
    Apr 24, 2015. 06:47 PM | 1 Like Like |Link to Comment
  • MORL March Dividend To Bring Yield To 24%, Yellen Holds The Key To The Future [View article]
    An update on this big dividend month buying and selling strategy if anyone is still interested in it. I watched the indicative value of MORL and the MORL stock price on the dividend announcement date and on the payout date (DRIP date). There was no material difference. This leads me to conclude that this works only from the selling that accompanies individual mREITs going ex dividend and the run up in price from the purchasing that happens after this selling. Also the time frame of market stability this trade happens in. Although I didn't execute this strategy during this big dividend month, it would have yet again been profitable.
    Buy @ 20.99 on Thursday April 2nd 2015 at 9:45am eastern time (before announcement by MORL.)
    Sell today (April 24th) @ 20.49 at 11am eastern time.
    loss of 50 cents on price but gain of 88.58 cents in dividend = +38.58 cents per share (minus trading costs and any taxes you would pay in a taxable account. If you use the robinhood trading platform, trades are free)

    If you want to stay out of MORL during a FED rate hike, but still get the big dividend, this may be an option for you. I'm still not convinced that MORL should go down with a FED rate hike. Without diving into each companies assets too deeply, it seems evenly distributed among stocks that will benefit with a rate rise (NRZ, STWD, CLNY, NYMT) and stocks that will be damaged by a rate rise (NLY, AGNC). Wish I had time to research and write an article on that idea. Even with that balancing of risk in the assets of MORL, I would expect some kind of drop in MORLs share price with a rate rise announcement just from perception issues. That drop may not be made up until the dividend and earnings announcements show that the market perception is wrong.
    Apr 24, 2015. 11:45 AM | 4 Likes Like |Link to Comment
  • The Appeal Of HCP's High Yield Is Limited By Their Troubled Tenant [View article]
    Ventas yield is low on your table, FINIZ are reporting only a fraction of the dividend. The total dividend is .79 and the yield is 4.28% as of close on 4/14/2015
    Apr 14, 2015. 07:55 PM | 1 Like Like |Link to Comment
  • Meet The New NCT: CDO Recoveries, Golf And A 100%+ Upside Potential Over The Next 2 Years With A 10.6% Yield While You Wait [View article]
    So far so good. I got in at 4.25 and its up to 5.32 now with a .12 dividend on the way.
    Apr 14, 2015. 07:39 PM | Likes Like |Link to Comment
  • New Residential Investment: Analyzing Future Earnings Potential After The HLSS Purchase [View article]
    Thanks for the new analysis on NRZ, I bought more of NRZ back around 12$ a share in part because of your previous article. Looks like it still might be a good buy even after the recent price jump. If it gets anywhere near a 50 cent dividend and 25$ a share, it will have no contenders for my best performing 2015 stock.
    Apr 8, 2015. 11:12 PM | Likes Like |Link to Comment
  • New Senior declares $0.23 dividend [View news story]
    Nice it finally came in, and they cleared up when they will announce their dividends going forward.
    Apr 6, 2015. 07:26 PM | Likes Like |Link to Comment
  • The Case Of Investing In Master Limited Partnerships [View article]
    The distribution went down for MLPL in Q1 2015 (1.4051 vs 1.6246 from Q4 2014). If the distributions of the individual constituents of the index for MLPL are going up, the only conclusion left is that the price decrease in MLPL has led UBS to cut their holdings of certain MLP's in order to rebalance to match the index. Lance Broffman talks about how stock price decreases in these 2x leveraged ETN's can lead to dividend decreases even if the individual stocks don't cut their dividends. Any other conclusions?
    Apr 2, 2015. 12:02 PM | Likes Like |Link to Comment
COMMENTS STATS
326 Comments
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