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More on CYS Investments' (CYS) special dividend: How does a mortgage REIT - which must pay out...

  • Tuesday, December 11, 2012, 8:44 AM ET
    More on CYS Investments' (CYS) special dividend: How does a mortgage REIT - which must pay out nearly all of its earnings as dividends - salt away the money for a special dividend? At these high level of MBS prices, companies can sell holdings for rainy-day money such as this - it's how many mREITs maintain a dividend in the face of lower returns. The issue for CYS now - its slush fund is empty and returns may remain weak going forward. Shares +2% premarket.
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  • CYS was up this morning as I expected but now it's down. Why do you guys think mREITs are down on this move when effectively CYS just added a lot of value to the upcoming dividend?

    ChuckJ
    11 Dec 2012, 01:18 PM Reply Like
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