Dividend Living

Long only, long-term horizon, medium-term horizon, growth
Dividend Living
Long only, long-term horizon, medium-term horizon, growth
Contributor since: 2013
You got the dividend if you bought Thursday, so adding that in you are actually ahead of where it ended Friday.
One thing to add is that OHI is within a dollar of its 52 week low, which I think it hit today. I picked up some shares this week including today. Great time to initiate a position, I didn't think we would see these lows again with that constantly increasing dividend.
I like it. Maybe share price will finally recover a bit.
Glad the dividend was held stable. One more step in increasing confidence in this REIT.
There goes holding till oil rebounds. Must have been the 60% down in one month rule that triggered it.
This is very useful information, thanks CWMF! I'm hoping for a positive total return on mREITs this year as well. Long MORL, NYMT, NRZ, WMC, ORC.
Rising long term interest rates - value of MBS holdings goes down for mREITs, earnings go up.
Flattening yield curve - earnings go down for mREITs, if long term rates go down, value of MBS holdings goes up.
Hedging can mitigate the losses to some degree, but usually not completely.
Ideal situation - steepening yield curve with lowering long term interest rates (short term rates going down faster than long term rates). this increases earnings and increases value of MBS holdings.
I hope they dont cut the dividend. buying back shares to increase NAV...isnt NAV already really high compared to price and it isnt helping? This shareholder would rather see a stable dividend and I think thats the better road back to higher stock price. I bought more shares today at 21% yield if they maintain the dividend.
Thanks Stanford Chemist.
These steps taken by the index to avoid the re-balancing effect you identified last year may work, but I'm not waiting to find out. I was out the day before December hit. I wont be coming back to CEFL unless they have a year end re-balancing that is clean for shareholders. My efforts to contact UBS about this issue failed to get a response.
BTIG has been seduced by the dark side of the force. I have hope, Yoda told me the light side is stronger. like any good movie, after all seems lost, the good guys eventually win.
This book value report shows a negative return so far this quarter. If you take 2/3 of the dividend (.3867) and subtract it from the book value reported (12.91) to get your book value as of Nov 30th, you get $12.5233. Subtract this from book value as of Sept 30th (13.26-12.5233) you get a loss of .7367 in book value for the first two months of the fourth quarter. .7367-.3867 (dividend) = .35 cent loss in total return (book value change plus dividend.) This is what Mr Fulton is trying to say. Not what you want to see in mREITs. You would be better off putting cash under your mattress.
I hope NYMT keeps this dividend steady! Trust will take a while to recover, but this helps.
Im long and buying more. Should announce their next dividend next week (Dec 14-18)
long NRZ, adding currently and if it drops more. My hardest decision is to decide if NRZ or NRF is more undervalued and set to rise in January, so Im buying both. keeping dry powder for a possible drop around the FED announcement next week.
One of the issues is their statement "Alternatively, this cash flow can be used to fund some or all of KMIs equity needs. KMIs board will be reviewing the dividend policy and financing plans in the coming days" Sounds like the dividend is on the chopping block. That could account for some of the selling from this announcement.
With the Robinhood App you could buy one share a day without trading fees. There have been a few days in a row I did just that with T. The ultimate dollar cost averaging!
Robinhood is so far a good broker. I havn't dealt with tax season yet with them. They have been responsive to emails that I have sent them asking questions. You get a monthly statement that has been accurate. If you have it on andriod, you have a dividend page that gives you all the dividends you have been paid and the upcoming dividend payments of stocks that have passed their record date for the dividend, which is a nice feature I dont have on my tradeking account. You can limit order or market order, and stop order and the response time has been quick for placed orders. I love being able to buy just 1 share of a stock if I want with no commissions. I dont have the majority of my holdings in robinhood because Im waiting to see if they can make money and stay in business without commissions. Seems that now they are running on venture capital and need to get their margin accounts up and running to start making serious money. right now they just use the cash in their customers accounts to make a little money, but it doesn't affect your ability to use it when you want. a few dividend hickups (few days late payment) so far that I had to email them to straighten out, but they were responsive.
I have done similar things to what you both talked about. I watch to see if an investment is cheaper than when I bought it, but that doesn't automatically mean I invest my dividends in it. I try to find out why it has gone down, and if it is because of a change in the outlook or earnings of the business I consider that as well as the cheaper price. For example, I own KMI and see its down 5% from where I bought it, but I also look at things like what Nicholas mentioned in this article about KMI and I decided to not reinvest more into it until more clarity on oil price direction unfolds and we see how that affects this company. I ultimately decided to reinvest in T even though it wasn't down as much as KMI because the earnings picture going forward is looking better for T than KMI. It took monitoring to make these decisions. These developments in the companies that shaped this decision happened after I made my initial assessment to invest in them in the first place. At times though, the decision is easy because nothing has changed in the companies earnings potential and the price has gone down. O is a great example, I reinvested some into O when it fell below 44$ a share. Nothing had changed from when I bought some near 46$ a share. Some people set an easy rule like "cut the dividend and I'm out" which takes the monitoring time down to watching for dividend announcements. In that case, you could just reinvest into what is down the most. Not a bad plan, and it frees up your time a bit.
The real question for each of us is if monitoring stocks for the best value when reinvesting is really worth your time for the money you make at it, or if simple rules surrounding the dividend not being cut and reinvesting in stocks that are down is a better choice for your life because it frees up time. Id love it if a simple rule would work better than constant monitoring AND free up time, but I just don't see how it can avoid all the potential problems that could come if you didn't follow developments at companies and re-evaluate them.
No IRA's in robinhood yet. They are routinely adding features as time progresses though, recently adding an android app with a dividend tracking feature. They say IRA's are on the "to do" list along with margin accounts, and DRIP.
I DRIP some stocks in my Tradeking account, but otherwise Im using my Robinhood account to buy more shares with my dividends with no commissions.Taking trading fees out of the equation with a robinhood account makes reinvesting selectively my preferred way to go on companies im not comfortable DRIPing. I DRIP companies like O, JNJ, OHI. But mREITs or BDC's Im not comfortable DRIPing. Selective reinvesting is the way to go if you have the time to monitor the markets closely.
Stopped my DRIP on NYMT, but at $5.50 I did pick up a few more shares. As you said, they must earn my trust back. A few quarters of dividend stability and book value stability and positive return on equity would do it. NRZ is where I'm parking my NYMT dividend for the moment.
CWM,
Take a closer look at the dividend announcement, they report book value as of Aug 31st as $14.10 (not including dividend announced). I just take 2/3 of the dividend and subtract that from their reported BV to get a $13.70 book value because they had theoretically earned 2/3 of the dividend by Aug 31st. That is a slight book value loss from the $13.89 they reported June 30th. Sure the hedges could still swing that book value either way, but MBS values have increased slightly since Aug 31st. Having this peek at book value 2 months into Q3 gives us some indication that the quarter will have a book value loss smaller than the dividend paid and thus give us a positive return for the quarter.
Using my 2/3 dividend subtraction estimation - Book Value is $13.70 per share on August 31st when you factor in the dividend announced. Looks like they may actually get a positive return (book value change + dividend is positive) this quarter as BV was 13.89 at the end of Q2. This is positive news despite the dividend cut. last quarters return was flat. I'm more concerned with positive return than I am with dividend changes.
I've stopped my DRIP on NYMT and will put the dividend into NRZ. If the dividend and book value keep going down to the point that their book value losses are bigger than their dividend payout, (negative returns)I'll likely sell out. NYMT used to be the only mREIT I trusted to keep their dividend stable. NRZ seems to be better in this environment. If rates rise, they earn more. Ive not yet thrown in the towel on NYMT, but the trust is gone.
I think NRZ is a suitable replacement. they just RAISED their dividend. Yield is similar, but a little lower.
Thanks for putting that dividend cut possibility in this article, it turned out to be prophetic despite managements hopes expressed in the Q2 earnings report and conference call.
Steve Mumma on Q2 earnings Aug 4 2015 - "We continue to believe our current portfolio, coupled with improved loan sales execution in our distressed loan portfolio and the full deployment of excess liquidity can generate annual earnings that are reflective of our current dividend policy." He also said CPR's would subside, they would have more timely loan sales in Q3, and the new second lien mortgage program would expand the net interest margin.
Guess this didn't work out as he planned. He sounded so hopeful for maintaining the dividend.
rethinking this one.
Long O and recently opened a position in NNN. Im happy owning both. It diversifies me a bit. Thanks for the easy look deeper into the books of these great companies. I expect similar returns from them.
Another item to mention is robinhood trades with a first in first out method that you cannot change.
I think they will keep it at .27 because the CEO talked about how they will earn more in Q3. I think that shows he expects to pay out .27.
The average earnings per share and per quarter since starting to pay their usual 27 cent dividend has been 29.3 cents per share. I am planning on buying more, management seems to understand what it takes to keep the dividend streak alive and the book value stable. The book value is still up 31 cents per share from 3 years ago when they started the 27 cent dividend and that time period includes the taper tantrum in the summer of 2013 when their mREIT competitors took massive book value hits and cut their dividends. Long NYMT on a DRIP and accumulating.