Acuant Signals Acquisition on the Horizon [View article]
In regard to question 2, the author seems to imply that Actuant is not a conglomerate currently and is unfamiliar with acquisitions. Essentially, Actuant's whole growth strategy is to make small bolt-on acquisitions and roll-ups, which they have been doing for years. The company already has many characteristics of a conglomerate.
CapitalSource Can't Cover Its Dividend [View article]
In answer to reader's question, I the answer is yes.
To be fair, CSE is classified as a mortgage REIT, but that is not the nuts and bolts of the operation. Most of their business is making loans to mid-sized companies.
At some point (I think a few years ago), they bought a few mortgages and had themselves classified as a REIT in an attempt to obtain tax-exempt status. Clearly this is not working so well as much of their dividends were actually returns of capital and their effective tax rate was over 30%, but that does not mean their business is not doing well. Their loan business seems to be doing fine and whether or not those distributions are dividends or returns of capital is irrelevant to me. I just love the current monster yield.
In short, the title is disingenuous, as CSE CAN cover the dividend, they just can't do it from tax-exempt income.
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Latest | Highest ratedAcuant Signals Acquisition on the Horizon [View article]
Nintendo Needs To Reach Out to Shareholders [View article]
CapitalSource Can't Cover Its Dividend [View article]
To be fair, CSE is classified as a mortgage REIT, but that is not the nuts and bolts of the operation. Most of their business is making loans to mid-sized companies.
At some point (I think a few years ago), they bought a few mortgages and had themselves classified as a REIT in an attempt to obtain tax-exempt status. Clearly this is not working so well as much of their dividends were actually returns of capital and their effective tax rate was over 30%, but that does not mean their business is not doing well. Their loan business seems to be doing fine and whether or not those distributions are dividends or returns of capital is irrelevant to me. I just love the current monster yield.
In short, the title is disingenuous, as CSE CAN cover the dividend, they just can't do it from tax-exempt income.