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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.