Seeking Alpha

Two Harbors Investment (TWO) owners of record on April 2 will receive approximately 0.049 shares...

Two Harbors Investment (TWO) owners of record on April 2 will receive approximately 0.049 shares (about $0.9325 worth at today's closing price) of Silver Bay Realty (SBY) common stock for each share of Two Harbors common they own. The ex-dividend date is March 28 and the distribution will be made on or about April 24. (PR)
Comments (12)
  • The ex-dividend date is listed as March 20 but I believe that should be March 28.
    25 Mar 2013, 04:19 PM Reply Like
  • Math here is a little off. It should be $0.93 worth of SBY per share of TWO you own.
    25 Mar 2013, 04:39 PM Reply Like
  • Looks like they made the correction above.
    25 Mar 2013, 05:19 PM Reply Like
  • mjc99 is correct...
    25 Mar 2013, 05:34 PM Reply Like
  • Anyone have a feel for the value of Two x SBY, x dividend and x new share issuance?
    25 Mar 2013, 05:35 PM Reply Like
  • By my figuring, if you own TWO, with a declared dividend of $0.32, plus $0.93 per share from SBY, that equals $1.25 per share total. At a closing price of $13.74 that means a 7.95% quarterly payout - or 31.8% annulized! Anything wrong with this thinking?
    26 Mar 2013, 05:11 AM Reply Like
  • I could be wrong but TWO share price will likely drop 90 cents the day the shares of SBY are spun off . . .
    26 Mar 2013, 04:06 PM Reply Like
  • Excuse me - correction. It translates into a 9.1% quarterly payout - or 36.4% annulized.
    26 Mar 2013, 05:11 AM Reply Like
  • the .93 will come in the form of shares of SBY and will only happen this one time. I wouldn't annualize it because that's not what the dividend will be going forward. Lets hope they raise it from .32 back to .40.
    26 Mar 2013, 08:28 AM Reply Like
  • Will be even better if SBY starts paying increased divs, too. If they pay $.08, and $TWO stays at$.32, it's a wash.
    I like getting money.
    26 Mar 2013, 09:29 AM Reply Like
  • SBY declared a 1 cent divy for April 1 holders of SBY.
    I also agree that one should not annualize the ONE time divy of SBY stock worth .93 cents The 32 cents is what should be annualized not the 93 cents of SBY
    26 Mar 2013, 01:11 PM Reply Like
  • Is your cost basis on a stock dividend zero??? So if you sell the SBY (stock dividend) shares immediately you will have a 100% S.T. gain which will tax at the same rate as ordinary income? Any tax specialists out there?
    26 Mar 2013, 01:13 PM Reply Like
DJIA (DIA) S&P 500 (SPY)