Seeking Alpha

American Capital and Two Harbors coverage started at JPMorgan

  • JPMorgan initiates coverage on two mREITs, starting Two Harbors (TWO) at a Buy with $10.50 price target and American Capital Agency (AGNC) at Hold with $22 price target.
  • Two Harbors, of course, invests in a wider variety of assets and has a good deal of exposure to credit, rather than rates. American Capital, on the other hand, is strictly an agency MBS player.
  • AGNC is off 2.5% premarket, but it's just one trade for 102 shares.
Comments (7)
  • Anwar Bhamla
    , contributor
    Comments (96) | Send Message
     
    AGNC is also trading ex Dividend of $0.80!
    26 Sep 2013, 08:00 AM Reply Like
  • larrysocie
    , contributor
    Comments (9) | Send Message
     
    JPMorgan is in the news for defrauding and price fixing this morning. Why is SA not questioning their motives for publishing these TIPS.
    26 Sep 2013, 08:10 AM Reply Like
  • kernelpanic
    , contributor
    Comments (3) | Send Message
     
    @Anwar Bhamia - agreed! distortion gone wild
    26 Sep 2013, 08:36 AM Reply Like
  • ejyoerger
    , contributor
    Comment (1) | Send Message
     
    What the hell is going on with AGNC??? Does Gary Cain have a clue to what he's doing??
    26 Sep 2013, 10:31 AM Reply Like
  • caribsurfking
    , contributor
    Comments (22) | Send Message
     
    Yes, he is making himself rich, not you, his investor!
    26 Sep 2013, 12:59 PM Reply Like
  • Manitobatex
    , contributor
    Comments (482) | Send Message
     
    Somethings are fishy, smelly, stinky. The fact that the stock price was -80 cents (dividend amount) in the early am hours (3 am ET) of Sept 26 must raise some eyebrows......very questionable set of events. I would like the name of an exchange that trades after midnite that would cause the share price drop to exactly what the dividend payout was. X-dividend was Sept. 26, or maybe this situation that has existed for sometime & just comes naturally and prevents scalpers from doing a hit & run transaction. Maybe the rules need changing with window of ownership of 30 days before & aft.
    28 Sep 2013, 10:54 AM Reply Like
  • Dividends#1
    , contributor
    Comments (2239) | Send Message
     
    Hi Manitobatex,

     

    If I am understanding your comment correctly, you need to study how a stock that pays a dividend works. Your comment implies you are new to dividend stocks.

     

    I have owned AGNC for several years, reinvesting all dividends.

     

    In AGNC's case. On 9/25/13 AGNC closed at $24.04, since all shareholders knew AGNC was going EX DIVIDEND (which means WITHOUT DIVIDEND) on 9/26/13, we expected AGNC to open DOWN .80 cents on 9/26/13 (this is the mechanism of how a dividend stock trades on the ex dividend date), which would translate into a $23.24 opening price for AGNC. That does not mean AGNC will open at that exact price, because there is PRE MARKET TRADING going on, so therefore the opening price can be higher or lower then $23.24, the actual open was $23.20 (very close to the ex dividend price of $23.24).

     

    For AGNC, the stock market takes away the .80 cent dividend on the ex date and PAYS it back on the PAY DATE, which will be on 10/28/13.

     

    AGNC has returned over 24% annually since its 5/2008 IPO. And over the last 3 1/2 years since 3/31/10 AGNC has returned 15.4% annually. AGNC has paid $26.96 in dividends over 22 quarters, an average quarterly dividend of $1.22 since their IPO.

     

    AGNC has paid $4.35 in dividends over the last 4 quarters ( 1 year period) an average quarterly dividend of $1.0875 rounded to $1.09 per quarter. Not bad for a stock that is out of favor and that has had to navigate a very challenging interest rate increase of 100 bp in a 2 month span earlier this year.
    28 Sep 2013, 06:41 PM Reply Like
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