- My projection is that in November, MORL will pay a monthly dividend of $0.1218. This would bring the annualized compounded yield to the 25% level.
- The switch from quarterly to monthly dividends by AGNC, the second largest component of MORL, accounts for the increase in the November dividend.
- The economic outlook remains cloudy. Some have even begun to talk about the possibility of a QE4 program where the Federal Reserve starts a new asset buying program.
- MORL and the mREITS could be hurt if Fannie Mae (FNMA) reaches some accord with the mortgage originators where they will not have to buy back soured mortgages.