What's up with mortgage REITs and special dividends (first CYS, now AMTG)? REIT dividends have...

|About: CYS Investments, Inc. (CYS)|By:, SA News Editor

What's up with mortgage REITs and special dividends (first CYS, now AMTG)? REIT dividends have always been taxed as ordinary income, and thus won't be hit by a hike in the dividend tax rate. It smells of the companies trying to throw in some nominal good news amidst big dividend cuts. Trouble is, the use of this "slush fund" money now makes bigger cuts more likely in the new year. AMTG now -0.2% premarket.