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Annaly (NLY) announces a Q4 dividend of $0.45/share, down from $0.50 last quarter, but maybe not...

Annaly (NLY) announces a Q4 dividend of $0.45/share, down from $0.50 last quarter, but maybe not as big of a cut as had been expected. We'll have to wait until the earnings report to see how much was operating income and how much was capital gains on MBS sales. Shares +0.4% AH. (PR)
Comments (10)
  • h0684cfm
    , contributor
    Comments (4) | Send Message
     
    An income drop to .25 would still be a deal for the longs
    18 Dec 2012, 05:47 PM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2571) | Send Message
     
    I don't know how you figure that. If the dividend dropped to .25, that's a 44% drop from .45. I would expect the share price would drop to around $8 per share. The loss in price per share would dwarf the yield.
    18 Dec 2012, 11:30 PM Reply Like
  • mythreesons
    , contributor
    Comment (1) | Send Message
     
    run away. i did that with ge when it went to 6. lost a lot. when this bounces back like ge you will have some good conversations with. yourself.
    18 Dec 2012, 09:38 PM Reply Like
  • rjchiodi1944
    , contributor
    Comments (10) | Send Message
     
    With this reduction in dividend the price should drop $1.55 / share today. It will take almost a year of dividends to make up for that loss assuming there will be no more reductions in dividends. Still I don't think there are many more REITS paying 0.45/14.00 = 3% / quarter.
    19 Dec 2012, 03:46 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2571) | Send Message
     
    I don't know that the share price will drop much, if any, as a result of the $ .05/share reduction. I think this was expected and is already priced into the stock. Depending on the next 10-Q, it could drop more if the news out of it is negative, such as another good drop in net interest margin. But I think the $ .05/share reduction announcement will have a negligible impact on the share price.
    19 Dec 2012, 03:52 AM Reply Like
  • bill d
    , contributor
    Comments (1879) | Send Message
     
    Guess you missed that one - UP about $.40 since yesterday.
    And it's over 12% annually. A lot of us here don't worry too much about price - it's the dividend we are after.
    19 Dec 2012, 03:01 PM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2571) | Send Message
     
    Long term, really long term, like 10 years or more, perhaps the change in share price will not be material in earning a decent return on dividend yield. That has been the case for Annaly from its beginning to now. I am aware of that. However, we are in unchartered territory with the Fed and QE3. Whether Annaly's success will continue remains to be seen. I hope so, but I'm out for now. Everyone has to make their own determination. I hope you folks who are long on Annaly are rewarded for sticking it out.
    20 Dec 2012, 07:53 AM Reply Like
  • Larry Dickman
    , contributor
    Comments (54) | Send Message
     
    I agree with Bryce. The stock has been in a downward trend in I think anticipation of this and it's priced in. This is a "buckle your seat belt" position, it wouldn't be paying the dividend it does if it wasn't. Perhaps the faint of heart might feel more comfortable elsewhere.
    19 Dec 2012, 07:54 AM Reply Like
  • bill d
    , contributor
    Comments (1879) | Send Message
     
    Up 1.6% again today.
    Look at the 10 yr chart and tell me about the "downtrend".
    Stocks do go up AND down.
    20 Dec 2012, 01:30 PM Reply Like
  • rjchiodi1944
    , contributor
    Comments (10) | Send Message
     
    Yeah. Stocks do go up and down. Up, especially as they approach their ex-dividend dates, and down afterwards, as is the case with REITs. But when a company makes its profits from the difference between loan rates, and lending rates are now near zero for banks, with commercial and retail rates @ <4 percent, how can you continue to expect to produce dividends for stockholders/investors @ >10%? Sounds "Madoff-esque" if you ask me. Time to find investments that are less opaque and inscrutrable
    21 Dec 2012, 08:55 AM Reply Like
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