Seeking Alpha


Send Message
View as an RSS Feed
Latest  |  Highest rated
  • How 7 REITs Could See A Buying Frenzy Soon [View article]
    "AGNC dividends have dropped from over 20% to around 15%."

    You are of course, referring to the dividend the price of the instrument increases, the yield decreases proportionately. Yes, the quarterly distribution did drop from $1.40 to $1.25 per share (that's a 10% drop in distribution). But if you bought in at $25-28/share, the yield you are earning is far greater than the yield calculated on the current price. I've already received enough distributions to more than double my position in AGNC. I won't be selling it any time soon unless something drastic occurs!

    Banks are still not willing to approve many real estate loans, if any, so mREITS will continue to do well for at least a couple more years. In any case, it would be smart to keep on top of news that may effect the way you invest in them. They may seem risky but anything you invest in in this stock market in these times, is risky.
    May 24, 2012. 02:51 PM | Likes Like |Link to Comment
  • A bull on mortgage REITs, Dividend Master nevertheless unloads American Capital Agency (AGNC) and American Capital Mortgage (MTGE). AGNC's and MTGE's share prices tower by about 10% over their book values ($29.06 and $21.78 respectively, as of 3/31). Expect secondaries soon to "monetize the premium."  [View news story]
    I already own AGNC. Yesterday, I sold everything else in my portfolio to set me up to buy MTGE but I couldn't get any at the limit price I set. Lucky for me because I picked it up this morning at the opening bell for 23.10/share. Yes, I got it cheaper than my previous limit but that's just icing on the cake. I'm in these 2 REITS for the high distributions. I wish I had bought MTGE when I first became aware of it at $18/share but I was wary because it was new on the market. I just discovered that the 2 are related which made my decision to buy easier... Great experienced management for both. Personally, I think MTGE should appreciate to be about as much as AGNC and getting in now will greatly improve the returns in my IRA portfolio.
    May 24, 2012. 02:20 PM | Likes Like |Link to Comment
  • How 7 REITs Could See A Buying Frenzy Soon [View article]
    I completely agree with you, doing away with the requirement of a physical appraisal would be devastating. No lender would be willing to loan money without collateral equal to or more than the loan amount and "word of mouth" is no guarantee. It seems to me, if anything, it would discourage lenders from parting with their money.
    May 24, 2012. 02:20 PM | Likes Like |Link to Comment