Seeking Alpha

Dividend Investor_101

Dividend Investor_101
Send Message
View as an RSS Feed
View Dividend Investor_101's Comments BY TICKER:
Latest  |  Highest rated
  • New Residential Investment Corp declares $0.175 dividend [View news story]
    Yes, they are well hedged, both ways, as about 50% of their portfolio will go up in a rising rate environment and about 50% of their portfolio will go up if rates go down because of their mortgage bonds they also hold.

    I think this has just gotten thrown in with other M-Riets...hopefully people figure out that the dividend is a lot more stable. There is another company like NRZ, HLSS. HLSS has a yield of about 8%, so hopefully NRZ will have some price appreciation. HLSS is purely MRS's though.
    Jun 18 08:30 AM | Likes Like |Link to Comment
  • New Residential Investment Corp declares $0.175 dividend [View news story]
    Another special dividend...I see a pattern emerging here! :-)

    It looks like the total dividend going forward is going to be 4 quarters of .175 plus a special dividend every two quarters from "non-core earnings" like when they collapse mortgages or sell them for a profit.
    Jun 17 11:01 AM | 1 Like Like |Link to Comment
  • New Residential Investment Corp declares $0.175 dividend [View news story]
    That's great news...hopefully this marks the point in time where they are no longer lumped in with the MREITS!
    Sep 18 08:56 AM | 1 Like Like |Link to Comment
  • MORL Dividend Drops Again In September But It's Now Yielding 32% On A Monthly Compounded Basis [View article]
    Hi Lance,

    Can you comment on the other option that they can call this stock for:

    "if the monthly compounded leveraged return of the Index is not sufficient to offset the negative effect of the Accrued Fees and the Redemption Fee, if applicable."

    I like MORL, but it seems that the 4% fee is accrued each year and will eventually build up. If MORL drops to low, they will call it so they don't lose their built up 4% fees.

    Also, in the prospectus is says when it is redeemed in 30 years time, they will take out 2 times what the underlying index was when it was first issued. If the stock is not 2x greater, they you will loose all of your capital when it is redeemed. I know 30 years is a long time, but what are the chances of the underlying index really being more than 2x greater, since MREITS pay out most of their earnings? NLY, ANH, DX have been around for a while and thier capital gains are not great...just the dividends.

    Looking forward to your reply!

    If I like it, I'll load of the truck sometime when I think the worst is over :-)
    Sep 5 08:51 AM | Likes Like |Link to Comment
  • MORL Dividend Drops Again In September But It's Now Yielding 32% On A Monthly Compounded Basis [View article]
    It can also be called "if the monthly compounded leveraged return of the Index is not sufficient to offset the negative effect of the Accrued Fees and the Redemption Fee, if applicable."

    That's the thing that has me a little worried...as I don't know how to calculate that one!
    Sep 4 09:46 AM | Likes Like |Link to Comment
  • MORL Dividend Drops Again In September But It's Now Yielding 32% On A Monthly Compounded Basis [View article]
    Anyone wanting to invest in this should read the prospecuts on the USB website. MORL is callable, the fist date being in October of 2013. I didn't understand all of the jargon in it about how they charge interest and how that works into the price when they call it, but it could be bad.
    Sep 1 08:28 AM | 2 Likes Like |Link to Comment
  • PennyMac Mortgage Investment Trust (PMT -1.1%) is downgraded to Sell at Ladenburg Thalmann. The move stands in contrast with Compass Point's Buy recommendation from last week in which Kevin Barker argued the housing recovery should allow continued gains from PMT's distressed loan portfolio and the stock trades at a meaningful discount to its mREIT peers. [View news story]
    Never Heard of Ladenburg Thalmann. Nor did they say why they downgraded it.

    Housing prices are up quite a bit this quarter so the earnings should benefit from that.
    Jun 21 11:44 PM | Likes Like |Link to Comment
  • Western Asset Mortgage: Could This 20% Yielder Raise Its Dividend? [View article]
    Their book value of May 31st was 19.25. Problem is that once they pay their dividend this quarter, that will take out another .90 cents of book value dropping it down to 18.35 (plus any more losses in book value between May 31 and the end of June).

    Last quarter they lost 1.18 but book when down by over 2 dollars. This is because they didn't make an money that quarter, so they had to pay the dividned out of their book value. Same thing looks to happen this quarter, as mortgage rates are shooting up even higher now. Hedges will help, but probably not cover all of the losses.
    Jun 20 09:38 PM | Likes Like |Link to Comment
  • Western Asset Mortgage: Could This 20% Yielder Raise Its Dividend? [View article]
    WMC's book value went down by over $2.00 per share in Q1. That was with a rise in rates of about 30 points (from about 3.4 to 3.7) and rates have gone up to around 4% on mortgages. So expect another 2 dollar or so drop in book value. Last quarter it was 19.42 so expect book value to drop down into the 17's...unless mortgage rates drop drastically from a FED announcement between now and June 30 when the quarter ends.
    Jun 18 12:13 AM | Likes Like |Link to Comment
  • The Market Is Mispricing Prospect Capital [View article]
    PSEC is definately a keeper in my book. Even though they lend to higher risk companies, they only have 0.2% of their loans on non-accurral status. What other bank or financiall institution can say that?

    I didn't realize that PSEC had outperformed so well compared to the other indexes. Hopefully it continues on into the future!
    Jun 17 08:21 AM | 7 Likes Like |Link to Comment
  • Apple's Shareholder Program: The Day The Music Died [View article]
    Executive compensation, WELL SAID!

    Returning 100 Billion over 3 years is about 33 billion per year...they generate more than that each year in profit. So Apple will complete this buy back plus pay out the dividend and more than likely end up with more money than it has now. I don't really see how this is wasting money :-)

    My personal preference though would be that they would start a holding company that invests in other things outside of the Tech world...this company could invest in anything and then just feed the profits back to Apple share holders.
    Apr 28 02:28 PM | Likes Like |Link to Comment
  • The combined valuation of Newcastle Investment (NCT) and spinoff New Residential (NRZ) could exceed $15/share, according to the investor presentation which sees the two generating $1.11 in dividends. New Residential's peers sport an average dividend yield of 7.2% and Newcastle's, 7.7%. However, healthcare REIT yields are closer to 4%, and Newcastle should approach that figure as it builds its senior housing exposure. (earlier[View news story]
    Except for the substance comes directly from NCT and NRZ's presentation on their website stating the possible future dividend and what the stock could possibly trade for given that it's yield will probably tighten ;-)

    If NCT were to completely switch over to a Senior Housing REIT, the yield would be much lower (3-5%) if it were in line with other senior housing REITS.

    15 dollars a share for both companies is not unrealistic by years end or by next year. I don't think it will be hitting 15 a share in the next month though.
    Apr 28 02:22 PM | Likes Like |Link to Comment
  • Newcastle - A Good REIT To Invest In [View article]
    If you do your due diligence you will realize that MREITS like NLY are a completely different company than a REIT like NCT. NLY only holds Agency and Non Agency mortgage backed securities. NCT is becoming well diversified with holdings in Commercial real estate, Senior housing, Mortgage servicing rights, Non Agency Mortgages and bank loans.

    It is hard to compare it to another REIT out there...because there is no other REIT out there completely like it. HLSS is the closest thing to what NZR will be like, in my opinion...and the dividend on that is about 7%. If you look at REITs that have only senior housing, the dividend yield drops to 3-6% because the earnings are more stable.

    MREITS like NLY and AGNC can't really be compared with NCT, especially since they use a lot of leverage and invest most of their money in Agency mortgages.

    If you are investing for the long term and believe the world isn't going to end soon, then NCT and the spin off should do well.
    Apr 24 12:26 AM | 6 Likes Like |Link to Comment
COMMENTS STATS
13 Comments
17 Likes