This mortgage REIT changed its portfolio with the acquisition of Javelin Mortgage Investment. The use of non-agency RMBS creates a nice hedge against refinancing activity. The 13% yield represents a 10.78% yield on book value, which is still possible in the current interest rate environment. The dividend rates change for mortgage REITs and it is worth noting that for the last several years "change" has largely been in one direction (moving lower). However, having the same number of dividends declared and paid in each quarter makes the tracking easier for analysts.
ARMOUR Residential REIT (NYSE:ARR) announced its latest dividend earlier in July. The dividend maintains its prior rate at $.22 per month, but the way ARR handles the declaration is smart enough to warrant some discussion. In late June there was this event that put some fear into the markets; you might remember "Brexit." Despite ARMOUR Residential REIT being a mortgage REIT with very little connection to the broad equity market, shares often move in a strong correlation with the S&P 500. Consequently, it was an excellent time for ARMOUR Residential REIT to provide shareholders with a sneak peak of the next dividend. The company handles that by announcing an "expected dividend." Once July 1st rolled around, it was free to confirm the dividend.
Source: Seeking Alpha
Related Articles:
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
- 10 Dividend Stocks Building A Growing Cash Stream
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
A 13% Dividend Yield? Sure, I Can Buy That
Posted by D4L | Saturday, August 20, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.