Mortgage REITs unfazed by Hatteras dividend cut


The mREIT sector (REM +1.2%) is up for a 2nd consecutive day, with Hatteras Financial's (HTS +1.5%) 9% dividend cut overnight not hurting the stock and suggesting maybe a lot of bad news has been priced in. Core income in Q3 was $0.44 per share and the new payout is $0.50.

Another adjustable-rate mortgage player, CYS Investments (CYS +2.4%) is also ahead, as is Capstead Mortgage (CMO +0.9%). Others: Annaly (NLY +1.5%), American Capital (AGNC +1.7%), Invesco (IVR +2.4%), Western Asset (WMC +1.3%).

Related ETFs: MORT, MORL

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Comments (22)
  • DeepValueLover
    , contributor
    Comments (11164) | Send Message
     
    Japan buying?
    10 Dec 2013, 11:14 AM Reply Like
  • Darren McCammon
    , contributor
    Comments (3804) | Send Message
     
    Sell the rumor buy the news? Maybe divy cuts at NLY and AGNC, initiation of the taper, is all priced in and will be greeting with buying?
    10 Dec 2013, 11:18 AM Reply Like
  • nickbukowski
    , contributor
    Comments (148) | Send Message
     
    When will $IVR declare its next dividend amount?
    10 Dec 2013, 11:20 AM Reply Like
  • NATESR
    , contributor
    Comments (7) | Send Message
     
    Last ex-div was 9/24. expect next ex-div 12/24. I look for declaration next week
    10 Dec 2013, 08:01 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2860) | Send Message
     
    CIM very stong on huge volume yet again
    10 Dec 2013, 11:28 AM Reply Like
  • smurf
    , contributor
    Comments (6134) | Send Message
     
    DX up nicely today, also.
    10 Dec 2013, 11:55 AM Reply Like
  • The Sociology of Finance
    , contributor
    Comments (955) | Send Message
     
    The discount to book can only get so large before the price snaps back.
    10 Dec 2013, 12:02 PM Reply Like
  • VTH
    , contributor
    Comments (613) | Send Message
     
    Mike, are you saying we don't buy this yet. I am very new in devidend stocks, angc and nly appealed to me. Do you think its still not time for mREITs
    10 Dec 2013, 12:11 PM Reply Like
  • stblouin
    , contributor
    Comments (11) | Send Message
     
    It's a reasonable time to purchase mREITs, but do your homework first as to which one is the best value at the moment and understand that the risk of capital loss is high.

     

    I would at least wait about a couple weeks until agnc and nly declare their dividends. Unless you feel like gambling a little.
    10 Dec 2013, 02:24 PM Reply Like
  • VTH
    , contributor
    Comments (613) | Send Message
     
    Thanks stblouin.
    12 Dec 2013, 10:04 AM Reply Like
  • Cavalaw
    , contributor
    Comments (167) | Send Message
     
    ARR will declare dividends for next Q very soon. That will be a good indicator of things to come for mReits
    10 Dec 2013, 12:07 PM Reply Like
  • $Reed
    , contributor
    Comments (69) | Send Message
     
    CMO benefits from rising rates
    10 Dec 2013, 01:43 PM Reply Like
  • MobilePreacher
    , contributor
    Comments (603) | Send Message
     
    rarara, so true... and even after the articles and comments, its strange that most dont understand that... I will add though the one risk that CMO faces right now that many others with longer duration risk may not, is prepays from refinancing. if that is under control, this will be a good quarter
    10 Dec 2013, 02:52 PM Reply Like
  • Dividend Living
    , contributor
    Comments (380) | Send Message
     
    Cys already announced a .32 payout. Down from .34 the previous quarter.
    10 Dec 2013, 02:13 PM Reply Like
  • grharmon
    , contributor
    Comments (72) | Send Message
     
    wish i bought more TWO at $9
    10 Dec 2013, 02:24 PM Reply Like
  • mikep3796
    , contributor
    Comments (13) | Send Message
     
    How come the insiders at HTS haven't sold? Some bought more recently. I think they know something that we do not. True, they have been awarded much more that they bought. Even so...
    10 Dec 2013, 06:01 PM Reply Like
  • lstahler
    , contributor
    Comments (737) | Send Message
     
    NLY went up to 10.20, today. Congress says they will extend 2 more years onto the last deferment. Have we seen the bottom? Get back in now or wait till 2014?
    11 Dec 2013, 01:38 AM Reply Like
  • MobilePreacher
    , contributor
    Comments (603) | Send Message
     
    long term rates are more likely to rise than fall... alot of the big mREITS like NLY and AGNC are just leveraged 10 year treasury funds in reality... I know i know they buy MBS's but lets be real... they move with the 10 year. So if you think 10 year rates are headed lower, then yes now is the time... if not then no... now is not the time. It really is as simple as that with most of these mREIT stocks.
    11 Dec 2013, 06:30 AM Reply Like
  • lstahler
    , contributor
    Comments (737) | Send Message
     
    I am in, should I get out? They say rates are going up. Thank for the reply.
    13 Dec 2013, 10:34 AM Reply Like
  • MobilePreacher
    , contributor
    Comments (603) | Send Message
     
    nobody on seeking alpha is qualified to make that kind of call for your personal portfolio... As i have often said there is a case to be made to hold things like HTS or AGNC. For us, we dont hold any HTS right now, but i would not go so far as to say you should sell yours, especially if you have held it for a long time already.
    13 Dec 2013, 11:05 AM Reply Like
  • lstahler
    , contributor
    Comments (737) | Send Message
     
    Just found out that NLYp div is being raised a few cents. So the common stock div should be fine. Glad I'm back in before the news.
    15 Dec 2013, 11:04 PM Reply Like
  • MobilePreacher
    , contributor
    Comments (603) | Send Message
     
    good for you Istahler. Glad it worked out!
    16 Dec 2013, 06:50 AM Reply Like
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