Dynex lower after cutting dividend


A check of the mortgage REITs as dividend announcements continue to roll in finds the sector marginally higher, but Dynex (DXlower by 1% after cutting its payout by 2 cents to $0.25 per share. Hatteras Financial (HTS -0.3%) and Invesco Mortgage (IVR +0.3%) both held their dividends steady - as has been the norm for the sector this quarter.

Even with today's decline, Dynex - at $8.95 per share - trades above Dec. 31 book value of $8.69.

Comments (5)
  • smurf
    , contributor
    Comments (6390) | Send Message
     
    Might be time to collect the dividend and then scoot. Wait and see.
    19 Mar 2014, 10:50 AM Reply Like
  • Reim
    , contributor
    Comments (193) | Send Message
     
    This is just noise. DX has been bouncing up and down a few cents like this for quite some time now. DX is a very well run company.
    19 Mar 2014, 12:11 PM Reply Like
  • efactor
    , contributor
    Comments (719) | Send Message
     
    Reim. Incorrect. Recent dividend history:
    Dec 27, 2013 0.27 Dividend
    Oct 3, 2013 0.27 Dividend
    Jun 26, 2013 0.29 Dividend
    Mar 27, 2013 0.29 Dividend
    Dec 27, 2012 0.29 Dividend
    Oct 3, 2012 0.29 Dividend
    Jul 3, 2012 0.29 Dividend
    Apr 3, 2012 0.28 Dividend
    Dec 28, 2011 0.28 Dividend
    Sep 28, 2011 0.27 Dividend
    Jun 28, 2011 0.27 Dividend
    Mar 29, 2011 0.27 Dividend
    Dec 29, 2010 0.27 Dividend
    Sep 28, 2010 0.25 Dividend
    Jun 28, 2010 0.23 Dividend
    Mar 29, 2010 0.23 Dividend
    Dec 29, 2009 0.23 Dividend
    Sep 28, 2009 0.23 Dividend
    Jun 26, 2009 0.23 Dividend
    Mar 27, 2009 0.23 Dividend
    Dec 18, 2008 0.23 Dividend
    Aug 27, 2008 0.23 Dividend
    May 20, 2008 0.15 Dividend
    Feb 13, 2008 0.10 Dividend
    They are reverting back to the dividend amount paid in 2010. Sold my entire position today. Cuts to me mean not enough cash flow to sustain dividend. Down the road further cuts may or may not happen, but dividend growth is highly unlikely given the rising interest rate environment we're facing. A dividend that cannot keep up with inflation doesn't work for me, so one that is cut means goodbye.
    19 Mar 2014, 01:33 PM Reply Like
  • sydolphin
    , contributor
    Comments (2) | Send Message
     
    Anyone who panics on a 2 cent reduction on a 12% dividend, now more than 11%, should think twice about seeking high risk dividend stocks. I always figure in an average of 1.5% lower than previously and have not been disappointed. Anything more than 10% is more than satisfactory for me.
    19 Mar 2014, 04:47 PM Reply Like
  • efactor
    , contributor
    Comments (719) | Send Message
     
    I agree. If you need the income you should hold as long as the fundamentals are sound. I'll consider the stock again, when I retire and need the income stream.
    19 Mar 2014, 10:44 PM Reply Like
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