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AGNC, ARR, BCE, CTL, CYS, FTR, HTS, IVR, K, KRFT, MDLZ, NLY, S, T, TMUS, TWO, VZ, WIN
  • Continuation Of Defensive Approach In 2Q Forces Change Of Thesis On ARMOUR From Bullish To Neutral
    Wed, Aug. 20 AGNC, NLY, ARR 20 Comments

    Summary

    • Core EPS pressurized by high hedging costs and lower asset yield.
    • Company should give up defensive approach and take advantage of lower interest rates.
    • Company offers exciting double-digit dividend yield with potential for modest price appreciation.
  • Frontier Earns Neutral Thesis Despite Attraction For Income Seekers
    Wed, Aug. 20 CTL, WIN, FTR 4 Comments

    Summary

    • Company continues to offer a sustainable dividend yield.
    • Has managed to build solid broadband momentum, which will offer attractive growth prospects for future.
    • Free cash flows will be pressurized because of high debt repayment coming in the future.
  • Annaly Moves Smartly To Lower Hedge Positions, Thereby Increasing Core EPS
    Tue, Aug. 19 NLY 22 Comments

    Summary

    • Increase in core EPS will improve company's dividend coverage.
    • Annaly’s diversification to commercial and triple net lease assets reduced dependency on traditional agency MBS.
    • Stock an attractive total return opportunity of 17.30%.
  • CenturyLink Moves Forward With Strong Growth In Strategic Revenues
    Fri, Aug. 15 FTR, WIN, CTL Comment!

    Summary

    • Strong growth in strategic revenues and slowdown in decline of legacy revenues paint compelling outlook for the company.
    • Company offers significant potential for price appreciation based on discounted free cash flow analysis.
    • CTL’s management likes its current structure and will not opt for REIT model for next year or two.
  • Two Harbors Remains A Hit With Its 17% Attractive Total Return
    Tue, Aug. 12 TWO 3 Comments

    Summary

    • The company’s strategic investments continue to paint an encouraging outlook.
    • TWO has reduced its reliance on the repo market through FHLB membership.
    • The company needs to reduce its hedged positions, as the macro-economic environment is stable with low interest rate volatility.
  • American Capital Agency In Prime Position To Benefit From Lower Interest Rate Scenario
    Thu, Aug. 7 AGNC 3 Comments

    Summary

    • Company has taken right steps by increasing allocation to high yielding 30-year MBS and reducing overall hedged positions.
    • Rates will remain low since slacks identified by Fed continue to persist.
    • AGNC’s dividends are well covered by core EPS.
  • T-Mobile Earns A Neutral Thesis As Potential Merger With Sprint Collapses
    Thu, Aug. 7 S, T, VZ 1 Comment

    Summary

    • Company posted strong postpaid and prepaid net additions in second quarter.
    • Continues to invest heavily in network and expand 4G LTE framework.
    • TMUS suffers from declining ARPU and high churn rate.
  • Hatteras Does Well To Offer Safe Yield But Suffers From Absence Of Growth Catalysts
    Mon, Aug. 4 HTS 3 Comments

    Summary

    • Short term interest rates expected to remain low in the near future due to slack in labor market.
    • The economic environment looks favorable for mREITs with stable and predictable rates.
    • Lack of growth catalysts.
  • AT&T Continues To Remain A Preferred Stock In The Telecom Space
    Wed, Jul. 30 T, VZ 5 Comments

    Summary

    • Both T and VZ used different strategies and added over a million postpaid subscribers.
    • Next will add significant subscribers in the future and help maintain T’s lowest industry churn.
    • T also has a strong balance sheet and high total returns.
  • Neutral To Bullish As Verizon Cleans Up Its Act In Both Wireline And Wireless Segments
    Tue, Jul. 29 T, TMUS, VZ 2 Comments

    Summary

    • Company has delivered strong performance in the second quarter in both segments.
    • VZ has proven ability to add new subscribers and maintain lower churn in competitive environment.
    • Management has begun to build cash to participate in upcoming low band spectrum auction.
  • This Mortgage REIT With Its 19% Upside Potential Is A Must For Investors
    Tue, Jul. 22 IVR 4 Comments

    Summary

    • Attractive opportunities in non agency and commercial MBS.
    • Short term rates are expected to remain low.
    • Access to FHLB funds reduces the dependency on repo market.
  • CYS Fails To Deliver In Q2 Earnings; Defensive Portfolio Approach Earns Neutral Rating
    Tue, Jul. 22 CYS 7 Comments

    Summary

    • Company needs to give up defensive approach and divert its resources to high yielding assets.
    • Initiatives need to be taken to enhance asset yield.
    • CYS should also re-structure its hedged positions according to labor market conditions.
  • Sprint And T-Mobile Put Forward A Case For Merger Through Combined Spectrum Bid
    Mon, Jul. 21 T, S, TMUS 1 Comment

    Summary

    • Bigger companies not too bothered by attempt at combined bid by smaller players.
    • Combined bid not yet a done deal, as FCC could still scrutinize it.
    • Both VZ and T are also eager to acquire low-frequency spectrum.
  • Sustainable High Dividend Yield Attracts Investors To CYS Despite Worrying Strategies
    Fri, Jul. 18 AGNC, ARR, HTS 10 Comments

    Summary

    • Neutral thesis on CYS due to weak growth prospects given its high exposure in agency RMBS.
    • Defensive approach needs to be better managed to tackle interest rate scenario.
    • Company needs to diversify portfolio mix to enhance asset yield.
  • AT&T Comes First In List Of Preferred Stocks As Verizon Fails To Impress
    Tue, Jul. 15 VZ, TMUS, T 13 Comments

    Summary

    • VZ's strategy to compete in network quality not sustainable for a longer period.
    • Subscribers will be attracted to other carriers with lower costs and flexible payment plans.
    • T also a better option due to cheap valuations and high dividend yield.
  • Why CenturyLink Is Best Placed Among RLECs
    Fri, Jul. 11 FTR, WIN, CTL Comment!

    Summary

    • CTL has shifted focus from dividends to investing in new projects.
    • Stock remains attractive for income-seekers with high dividend yield.
    • Growth in broadband and video services will offset declining traditional voice revenues.
  • Investors Wary Of Poor Past Performance Of RMBS Attracted To Two Harbors
    Wed, Jul. 9 TWO Comment!

    Summary

    • Company’s significant exposure to non-agency RMBS and MSR investments will help increase earnings.
    • TWO has low sensitivity of interest rates to book value.
    • Compelling total return opportunity of 25%.
    • Low prepayment risk.
  • Diversified Portfolio Secures Annaly's Future Growth Prospects
    Tue, Jul. 8 NLY 5 Comments

    Summary

    • The company’s core EPS experienced a massive decline, pressuring dividends.
    • NLY has decided to reduce short dated swap position by $24 billion.
    • Tapering will not remain such a big concern if economic indicators continue their solid trends.
  • Growth All Around As AT&T Gets Ready To Release Second Quarter Results
    Tue, Jul. 8 T 11 Comments

    Summary

    • Q2 earnings later in the month will beat analyst expectations because of solid subscriber momentum.
    • T’s healthy dividend yield is well supported by strong balance sheet and hefty cash flows.
    • Increased demand for data will continue to drive growth in the future.
  • American Capital - An Attractive Stock In The Agency Mortgage REIT Space
    Fri, Jul. 4 AGNC 38 Comments

    Summary

    • Economic improvement has momentum to continue in future.
    • Low supply of MBS helps in reducing the impact of tapering.
    • Stock has dividend yield of 11% and modest potential for price appreciation.
  • Frontier Remains A Stock Of Choice For Income Seekers
    Fri, Jun. 27 FTR 9 Comments

    Summary

    • Company’s dividends remain safe and secure.
    • Acquisition of Connecticut business paints a compelling outlook.
    • Growth in broadband subscribers will continue.
  • Windstream Needs To Revise Dividend Strategy As Company Remains Overvalued
    Fri, Jun. 27 WIN 18 Comments

    Summary

    • WIN’s broadband internet shows signs of recovery despite numbers being negative.
    • Business revenue has lost momentum.
    • Investors continue to enjoy high yield, but risks of elevated payout ratio remain a concern.
  • Investors Continue To Flock To Armour
    Mon, Jun. 23 AGNC, CYS, HTS 41 Comments

    Summary

    • Company continues to be attractive after maintaining dividends.
    • Macro-economic environment is stable and economic indicators are showing solid trends.
    • ARR still needs to strike balance by managing risk and increasing asset yield.
  • CenturyLink Remains A Dividend Story
    Wed, Jun. 18 CTL 4 Comments

    Summary

    • CTL’s dividend yield remains safe and has attractive future growth prospects.
    • Data centre and hosting provides a significant growth potential.
    • Rising operating expense and high debt remain concerns.
  • AT&T: High Dividend Yield With Limited Growth Opportunity
    Jul. 17, 2013 S, VZ, T 16 Comments
  • Mondelez International: Highly Attractive Long Term Growth Prospects
    Jul. 5, 2013 MDLZ 13 Comments
  • Verizon: Attractive Valuation With Promising Future
    Jul. 1, 2013 VZ 4 Comments
  • Kraft: Attractive Dividend Yield With Low Growth Prospects
    Jun. 13, 2013 KRFT 23 Comments
  • Why Sprint Nextel Is A Buy
    Jun. 12, 2013 DISH, S 21 Comments
  • Verizon And BCE: Which Is Better?
    Jun. 3, 2013 VZ, BCE 18 Comments
  • CenturyLink: A Buy For Attractive Returns
    Mar. 20, 2013 CTL Comment!
  • Why Kellogg Is A Buy
    Mar. 15, 2013 K 1 Comment