Seeking Alpha
View as an RSS Feed

Dividend Living  

View Dividend Living's Comments BY TICKER:
Latest  |  Highest rated
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 2: New Residential Investment Corp. [View article]
    Also NYMT. Its above book value, but seems to be impervious to rate swings. It has dips in price that make buying opportunities. High stable dividend with recent high earnings making the potential for a dividend raise or special dividend. MREIT category without the rate worries.
    Mar 2, 2015. 10:37 AM | 2 Likes Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 2: New Residential Investment Corp. [View article]
    MLPL? Not an individual company, but its dividend is high and rising, its in the beaten up MLP sector, and is down from its high.
    Mar 2, 2015. 09:30 AM | Likes Like |Link to Comment
  • Western Asset Mortgage: Best-In-Breed Status? [View article]
    NYMT and WMC are both great and I own them both, but I'm more heavily into NYMT over WMC and I DRiP NYMT and not WMC. WMC has been a lot less predictable over the last few years as they change a lot interquarter as we saw today with the spread difference between Q4 and Q3. The total returns for me have been about the same though (17% NYMT and 15% WMC, with the DRiP making some of that difference). I just worry a lot less about NYMT. That could change of course, but its held true for almost two years now. My vote is still with NYMT for Best of Breed.
    Feb 27, 2015. 02:17 PM | 2 Likes Like |Link to Comment
  • Dividend Reinvestment Plans For Mortgage REITs [View article]
    Sticking with a stock while going down and DRIPing is a way to pick up more shares for increased income. If the price rebounds, it will be all the better for you to have bought low. Actually, most of the mREITs gained Book Value this year instead of loosing principle. Mortgages may not be physical buildings, but that doesn't change the fact that people still have to pay them.
    Thanks for the other suggestions. Its all about total return and those ideas could be a better alternative. At least KBWD owns mREITs as part of its portfolio.
    For full disclosure, since writing this article, the only mREIT I've been dripping has been NYMT and that has gone well. I use my dividends from MORL to invest in things like Realty Income (O) and more NYMT. Also NRZ, NCT, and OHI have been stocks I've bought more of recently with my MORL dividends. This article shed some light for me on what a lot of Brad Thomas followers already knew- In a DRIP scenario, O has outperformed NLY historically despite NLY's higher yield.
    Feb 27, 2015. 12:12 PM | Likes Like |Link to Comment
  • New York Mortgage Trust: The Dividend Powerhouse Just Won't Be Stopped [View article]
    ARM's adjust their interest payments upward with the Fed Funds rate I believe. That means they will pay out more in interest income. However, if the long term rates stay low, more people will want to refinance into a fixed rate mortgage to avoid the rising and potentially volatile interest payments. We've already seen a rise in prepayments in ARMs because of the general belief the Fed will raise the Fed Funds rate soon. So could really go either way, and as Mr. Davis pointed out, it depends on the rate at which they rise.
    Feb 27, 2015. 11:51 AM | 1 Like Like |Link to Comment
  • New York Mortgage Trust: The Dividend Powerhouse Just Won't Be Stopped [View article]
    if NYMT isnt required to pay out anything but their interest income as dividends to comply with the 90% rule, this quarter had only .20 per share in interest income earnings. NYMT can decide whether to use the rest of their income for dividends or to reinevst back into the business. They have repeatedly shown their comfort with the .27 Dividend and seem to be shooting for book value increases with the rest. a special dividend would be nice, but the book value increases are nice as well.
    Feb 26, 2015. 10:38 AM | Likes Like |Link to Comment
  • New York Mortgage Trust: The Dividend Powerhouse Just Won't Be Stopped [View article]
    true, I meant dilutive to earnings and dividends
    Feb 26, 2015. 10:14 AM | Likes Like |Link to Comment
  • New York Mortgage Trust: The Dividend Powerhouse Just Won't Be Stopped [View article]
    the news shares are not as dilutive as you might think. With all the share issues, I still calculate they have earnings attributable to shareholders of 35 cents over their dividend payments in the last year or so. see authors previous article commentary for my comment on the actual numbers used for this calculation.
    Feb 26, 2015. 09:46 AM | Likes Like |Link to Comment
  • New York Mortgage Trust: The Dividend Powerhouse Just Won't Be Stopped [View article]
    they said in the earnings release that the increases tax expense was from loan sales. Besides, a REIT is not taxed on the income it pays out in dividends, That is taxed on investors income taxes. the increase in taxable income shows that more of their earnings are not required to be paid out as dividends to shareholders to comply with the 90% rule.
    Feb 26, 2015. 09:40 AM | Likes Like |Link to Comment
  • Why A Dividend Hike From Best-In-Breed New York Mortgage Trust Is Inevitable [View article]
    With another .42 in net income attributable to shareholders in Q4 2014, its looking even better for a special dividend.
    Feb 24, 2015. 06:09 PM | Likes Like |Link to Comment
  • New York Mortgage Trust gains after results [View news story]
    this was a great quarter, again. investment validated.
    Feb 24, 2015. 05:24 PM | 3 Likes Like |Link to Comment
  • Update: Does American Capital Mortgage's Performance Justify My Best-Of-The-Best Call? [View article]
    Trying to fight my own ignorance, I looked at previous conference calls to get a sense of how the income and dividends work. I found out dollar roll income is treated as capital gains or losses for tax purposes instead of ordinary taxable income. They said in the Q2 conference call "Our taxable earnings will therefore not impact our decision with regard to where we set our dividends" They had been using the dollar roll income to offset tax loss carry over from 2013 rebalancing (they still have 2.83$ per share to pay down through 2018 and only 1.36$ per share of terminated swaps gains to put into taxable income in the future) and have been using undistributed taxable income to cover the rest of the dividend.
    Still, the wording of their statement on dividends makes me worry about its stability, and the dwindling Undistributed Taxable Income (UTI) is a worry when they still have so much in losses to pay down in the next 4 years.
    Feb 6, 2015. 05:44 PM | Likes Like |Link to Comment
  • Update: Does American Capital Mortgage's Performance Justify My Best-Of-The-Best Call? [View article]
    Took a quick look, they only have 12 cents left of undistributed taxable income to give out if they cant earn the dividend in Q1 2015, which it sounds like they cant. Id say 50 cent dividend going forward is likely unless they can make this up in other ways. They have been dipping into undistributed taxable income for a year now to cover their dividend. 
    Feb 5, 2015. 11:29 PM | Likes Like |Link to Comment
  • Update: Does American Capital Mortgage's Performance Justify My Best-Of-The-Best Call? [View article]
    "We maintained our $0.65 dividend in Q4 against the backdrop of $0.51 of taxable income in the quarter. As such the remaining $0.14 per share of our dividend essentially came from undistributed taxable income, which was in essence income earned in prior periods. Given today’s market conditions and our current portfolio positioning, we don’t expect to see a near term increase in taxable or GAAP earnings. These are important factors both management and the board will consider with respect to future dividends." - from earnings call http://seekingalpha.co...

    Sounds like a dividend cut is coming to me. I think they did well in Q4 despite loosing book value, especially if they didn't earn enough to cover the dividend and had to dip into undistributed taxable income.
    Feb 5, 2015. 11:22 PM | Likes Like |Link to Comment
  • Should You Be Worried About Western Asset Mortgage? [View article]
    WMC seems to be the hardest to predict of the mREITs. They have rebalanced their portfolio without much warning intraquarter, as well as significantly upping their hedging. Q1 2014 - hedges too big, lost book value during a lowering interest rate environment. Q2 2014 - large book value increase during lowering interest rate environment and taking some hedges off. Q3 2014 - BV stable. The outlook for Q4 is a BV loss if you take into account their announced BV and subtract the dividend as you did above. Interest rates were lowering in Q4, so they likely upped the hedges again on fear of rising rates. I hope they can predict rate moves in Q1 2015 correctly, but they have been hit or miss lately. I own a lot of WMC, but I reinvest the dividends elsewhere (NYMT, O) because management hasn't been predictable of late.
    Jan 31, 2015. 12:23 AM | 3 Likes Like |Link to Comment
COMMENTS STATS
300 Comments
210 Likes