Investors pounce on 3 mortgage REITs going ex-dividend today - Annaly (NLY +1%), Capstead (CMO...

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Owen Comments (328)
 
> nearly making up in less than a session all of the value erased from their stock prices due to the dividend payment.

What am I missing here? NLY's high of the day so far is $16.72, down $0.39 from yesterday's close of $17.11. Adjusted for the $0.55 dividend, that's up $0.16, or less than a third of the dividend paid out, and roughly in-line with the overall market lift. I'd hardly call it a "pounce" - you'd get the same 1% lift by buying the overall S&P.
27 Jun 2012, 03:21 PM Reply Like

Brian Bobbitt Comments (1347)
 
You ARE missing a step. Normally, stocks ex date, go down after as people who bought in lower, got the dividend, and now are on to greener pastures, USUALLY cause the price to be muted for a little while, where in this case today, look at the high, low, close of the day, and look where it closed the day before. You can clearly see today's action, gave you the 12.86% yield, AND the +.19 cents [which equates to another 1.15%] And usually, the stock drops the amount of the dividend, then, if all okay will recover to old price soon. In this case, we got it all today. So if you add the yield and the price action, you had a great day! See?
Math wizard I am't, but this one is clear if you have been watching price action of stocks on Ex date.

By the way, most REITs went good today, so that is part of the answer, but heckers, any port in a storm, if it is above water level


Capt. Brian
The Lost Navigator
27 Jun 2012, 06:12 PM Reply Like

Owen Comments (328)
 
I already took all of that into account in my post above, in case you haven't noticed.

The stock closed _down_ from yesterday's close. It is only due to the $0.55 dividend that we are considering it an up day. You can't add that number twice; we got a $0.55 dividend, _minus_ the $0.39 ex-div drop, for a combined gain of $0.16 for the day, pretty much in line with the overall market. If the same thing happened each quarter and the stock did nothing in between, that works out to an annual overall return (gain+div) of 3.8%, not 13%. Math really isn't your strongest suit, Capt'n.
27 Jun 2012, 06:46 PM Reply Like

mobilepreacher Comments (35)
 
CMO is the lowest risk of all the mREITS. check out the fundamentals of their book and you will see why its totally different than the others
27 Jun 2012, 03:42 PM Reply Like

stocksfourme Comment (1)
 
What about AMTG the better of those 3
27 Jun 2012, 03:49 PM Reply Like

Brian Bobbitt Comments (1347)
 
Without looking at the whens and whys, etc, I am wondering about the price drop down to 14ish... no biggie, just a notice...
27 Jun 2012, 06:41 PM Reply Like

JayWright Comments (95)
 
AMTG?? do you have the right ticker symbol?? they are a year old company and had Net Income of 600 bucks, paying a 15% dividend?? HUH?
28 Jun 2012, 03:32 PM Reply Like

Owen Comments (328)
 
> AMTG?? do you have the right ticker symbol?? they are a year old company and had Net Income of 600 bucks, paying a 15% dividend?? HUH?

Apollo Residential Mortgage, Inc. (AMTG) had a net income for 2011 of $4,472,000, according to their 10-K released in March. In the quarter ended March 31, net income was over $20 million, or $1.95 a share; they are now paying $0.75 of dividends per quarter, for a yield of 15.6%.

SEC filings are public; feel free to verify these facts.
29 Jun 2012, 08:56 AM Reply Like

deliasabboud Comment (1)
 
AGNC is still paying +15%.
27 Jun 2012, 04:52 PM Reply Like

bobwilbor Comment (1)
 
BobW

I noticed, as of late, a goodly number of controversial articles, relating to nly and issues the don't smell very good. We all know when we play high stakes (12-16% return) poker, we might do well to re-read the CEO's last line of his first quarter' s comments where he reminds use that There's no free lunch...and not sure how much or when that lunch will be paid for...but eventually ..it will be paid for.

I like AGNC too...at least for now. I wonder a bit about NLY lately...and with much more smoke...I'll take my kindling to another fire.
28 Jun 2012, 11:47 PM Reply Like