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Armour Residential (ARR) holds its $0.07 monthly dividend for now, announcing that will be the...

Armour Residential (ARR) holds its $0.07 monthly dividend for now, announcing that will be the payout for each month of Q3. Based on yesterday's $4.59 close, it's an annualized yield of 18.3%. (PR)
Comments (9)
  • WilsonWagwa
    , contributor
    Comments (49) | Send Message
     
    Great company. Next i expect a share buy back to bolster up the stock and who ever is shorting it.
    13 Jun 2013, 06:51 AM Reply Like
  • maxcrc
    , contributor
    Comments (128) | Send Message
     
    Those guys invested more into the same. The managment didn't care to destroy the book value with more and more products sensitive to interest rate rising, but the spread is allowing ARR to gain a lot, therefore they can mantain the current dividend, which ,with this depressed price, translaltes into on of the most attractive yields in the market. We are 30% below BV, if stock price doesn't recover now, so it will never do. If interest rates stabilyzes, ARR has the potential to go up a good 20%-25%. The problem has been the luck to trust so far.
    13 Jun 2013, 06:55 AM Reply Like
  • bernie 1
    , contributor
    Comments (511) | Send Message
     
    Does that mean that if my 1000 shares drop to 3 bucks, I'll be able to brag of a 36 % yield ?
    13 Jun 2013, 06:56 AM Reply Like
  • Doyle3000
    , contributor
    Comments (1256) | Send Message
     
    Bernie it's only a loss if you sell it. The ironic answer is YES. Each month takes $0.07 off of your cost basis and there is a market for these stocks. The worst thing you can do is sell right now.

     

    Also, when it gets close to $5 you can sell call options against the position. I sold several when it was at $4.95 earlier this week and was able to pick up another 5 months of dividends.

     

    These are INCOME stocks. Make some INCOME baby!
    13 Jun 2013, 09:03 AM Reply Like
  • Investorblogger
    , contributor
    Comments (7) | Send Message
     
    Having bought this stock at $7.50 and sold it at $6.6+..,. I can't see anyone sensible buying this & expecting an uptick. Why?

     

    The preferential stocks may have taken priority over dividend payments. In other words, ordinary stock holders have been hung out to dry by these additional issuances + dropping dividends (from 12c to 7c... that's a big drop).

     

    Without concrete reasons for the stock to turn around, and a rising interest rate environment isn't one, this one has nowhere to go but down for some time.

     

    Ex-ARR owner.
    13 Jun 2013, 07:17 AM Reply Like
  • C D
    , contributor
    Comments (123) | Send Message
     
    Long on ARR-will buy more to get my PPS down
    13 Jun 2013, 08:19 AM Reply Like
  • murray555
    , contributor
    Comments (219) | Send Message
     
    Bernie, I think at $3.00 it would only be a 28% divvy...for now. ;o)
    13 Jun 2013, 09:02 AM Reply Like
  • bernie 1
    , contributor
    Comments (511) | Send Message
     
    murray---36% or 28% wasn't the reason for the comment. I happen to be long both ARR (down about 4 dividends cents since I first bought) & the A & B preferred in another account.
    But thanks for the arithmetic lesson.
    13 Jun 2013, 11:45 AM Reply Like
  • 67g8i32
    , contributor
    Comments (200) | Send Message
     
    I regret i was not greedy enough yesterday. Now the sale is over.
    13 Jun 2013, 01:08 PM Reply Like
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