This company runs a highly leveraged portfolio of agency ARMs. It is routinely a good investment for the buy-and-hold investor and occasionally for traders. The ex-dividend date is coming up and there’s about $0.41 of dividend accrual.
Capstead Mortgage Corporation (CMO) has a relatively safe portfolio compared with the sector. Capstead has a highly leveraged portfolio of agency adjustable rate mortgages. While the leverage is over 9x, the agency guarantee makes the securities practically immune to credit risk. The market for agency adjustable rate mortgage is extremely liquid. This strategy also reduces duration risk.
Source: Seeking Alpha
Related Articles:
- High-Yield, High-Return Investments To Increase Income While Waiting On Dividend Growth
- Illinois Tool Works Inc. (ITW) Dividend Stock Analysis
- The Most Dangerous Investment
- 9 Dividend Stocks Beating The 4% Rule
- You Can't Spend Earnings
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Dividend payers have long had a reputation as stodgy companies that can pay a reliable income but whose stocks don't move too fast. Here...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
-
This company has great opportunities in their preferred shares for yield hunters. It recently dropped from a buy to a hold. However, on the ...
0 comments
Post a Comment
Post a Comment