That all sounds good, but as long as the per-share price continues to drop faster then the dividend rate we will continue to suffer losses. If this continues much longer the facts on the ground will prove your optimistic analysis to be way off the mark. I for one have started to re-position this part of my portfolio to more stable dividend producing investments.
We are all in the same boat with ARR, MTGE, AGNC etc. Since you mentioned Closed Ends Funds here are 3 very sustainable. DNP currently down a bit @ 9.31 with lots of upside. It pays a monthly dividend of .06 cents a share. I believe it will return to around 12 in the next few months. DUC is around 12.19 with a .07 cent monthly dividend and maybe a bit of upside but great stability. The third is FAM at 17.58 with around 9% monthly return. All three of these have been great dividend hogs with stability. Granted there is not growth but as ARR and others decrease the return rates and the price slides due to the return DUC, DNP and FAM start looking very good during this period of instability. All have returned good dividend over the years.
American Capital Agency (AGNC) falls 4.2% premarket as the stock goes ex-dividend today. The $1.54 decline thus far is quite a bit bigger than the $1.25 dividend. Secondary offering on the way? [View news story]
Funny AGNC and MTGE both took a big hit today. I would say no big deal, just a sale day on both of these family members. MTGE although a newer kid on the block has been very strong. It is following it's big brother and will in time catch up. This makes it a really good deal today. Both have been strong and paying better then almost any others in the neighborhood. I don't think this will change any time soon. So it may be a great day to double down and ride then up. IMHO most analyst's are just filling paper to make a living. If they were really so smart they would not have to work at a keyboard to make a living.
In The Wake Of Annaly's Downgrade, It's Time To Consider Alternative Options [View article]
One has to question the advise of a person who suggests a CIM over so many really stable and growing REIT's. Just to mention a few, MTGE, CYS, CMO and many more that are showing a nice dividend and a very healthy total return. Sometimes one has to wonder what an analysts is think when they make a recommendation such as this.
The more I see article's praising NLY the lower the share price goes. It's been a long while since NLY has been in the $15's except for the October dip. One would think that with all the hoopla being raised this would be going up a lot faster then it seem to be coming down. It is as if some actually want NLY to go down a bunch. Just my thoughts; when a stock gets too much praise it always seems to drop a bunch...
I believe that this is no the time to enter the fire sale. Real Estate is still a good place to be compared to the rest of the market. When you are looking for long term dividends this market will support REIT's. Look at today's bounce back for proof that panic is not a place you want to be. Over the next year things will change on the political seen. These changes will only help to support the Real Estate markets. People will continue to make babies, and the population will grow. They will need more office space, factory space, and start to eat up the excess inventory that is currently available. It will take a little time, but those who wait will earn the rewards. As Cramer has said 'pigs get slaughtered'. Don't be piggy and you will be rewarded. In this market trading is a bit piggy, investing is long tern and wise.
My Ideal Dividend Portfolio: Mostly REITs Coupled With High-Yielding Blue Chip Stocks [View article]
In all these conversations a few details have been left out. The earnings on REIT today will continue till the Real Estate markets make a radical move. This will not happen for a long time to come in our current environment. So receiving 14+ % or 19+ % is sure better then 2.78%. Growth is not something that will happen anytime soon. Once a new Administration is in place and the economy starts to grow again one is free to make the adjustments to ones portfolio that reality on the ground dictates. We all make these adjustment to our investment goals over time. I am retired and do focus on income over growth. When you do the real numbers high yielding REIT's are a good place to be for now. For one to benefit from growth in read dollars one must sell. So I believe that a high income portfolio is far superior to a growth position for the current economy.
Relief For Annaly Capital [View article]
Armour Residential REIT (ARR) declares $0.08/share monthly dividend, 11.1% decrease from prior dividend of $0.09. Forward yield 14.5%. Shares +0.9% AH. (PR) [View news story]
Annaly Will Continue To Deliver Strong Returns Despite Near-Term Challenges [View article]
American Capital Agency (AGNC) falls 4.2% premarket as the stock goes ex-dividend today. The $1.54 decline thus far is quite a bit bigger than the $1.25 dividend. Secondary offering on the way? [View news story]
IMHO most analyst's are just filling paper to make a living. If they were really so smart they would not have to work at a keyboard to make a living.
In The Wake Of Annaly's Downgrade, It's Time To Consider Alternative Options [View article]
Annaly: A Strong Income Stock [View article]
Time to Sell Out of Mortgage REITs [View article]
My Ideal Dividend Portfolio: Mostly REITs Coupled With High-Yielding Blue Chip Stocks [View article]