I owned NLY for several years watching the share price go down with every dividend. I just dumped the last of it. I have been going in to NLY preferreds C & D. They have held their share price and payed around 7.75%. I am convinced that the preferreds hold value while paying a pretty good dividend. Much better than watching the pps drop
My goodness. 1 year is not long term! I mean 5 years or more. I have no specific target price. Anything too much below 10 is about my bottom threshold. If it went up to 14, I would consider selling and reinvesting the profit. To me ,a stock price increase that is too big and not cashed out is kind of wasted. It doesn't mean much unless it is put to use or cashed out.
So what? You obviously are not invested in it. So why do you care? If you are so confident in the downside then you should be bragging about how many PUTs you just purchased
This has been a terrible investment for many how people see NLY as a good stiock to hold is beyond me. They give you 11% to hold this turd and the drop in the pps is greater. I don't get it here with these so called long termers.
Could you expound a little more on this: NLY management is paid 1% of assets under management through a separate management agreement. If management authorizes a share buyback, it would be good for shareholders, but bad for executive compensation.
My thinking is reducing the float will increase the PPS which in turn should increase executive compensation.
It is true that NLY could buy back its own shares at a 20% discount. The shares represent a portion of the bond portfolio So buying the shares is like buying mortgage backed bonds at a 20% discount. Since they are in the business of holding and trading bonds, you might wonder why they don't do a buyback. The answer is simple, NLY management is paid 1% of assets under management through a separate management agreement. If management authorizes a share buyback, it would be good for shareholders, but bad for executive compensation. If fact, the shares would never sell off to this level of discount if management would act on behalf of shareholders and take advantage of the arbitrage.
It took me 5 years to see the light, the only good thing I can say is that we did not have real inflation so the small gain was okay knowing that, but for the life of me I cannot see how so many people on this board see this stock as a good investment especially for income when all the cards are now trumping what NLY management can do to return a positive return. IMO what this stock has done over the past year is what will happen year over year when the FED starts moving rates up. I would not touch this stock knowing that with inflation likely be around 2%. Cash is king now, not reinvested NLY dividends.
52 week low at 10.21. Keeps getting lower and lower. You get .30 and it goes down .70. I have owned this stock for about 7 years, and ive hated it for a long time. if no spike soon i will sell with a small gain in total return. good luck
How can you see benefit reinvesting the dividend and holding long term when the entire interest market is about to shift and shift in a big way over time while NLY cannot come up with enough revenue to hedge their portfolio and pay the dividend. IMO what this stock has done over the past year will coninue and at some point when interest rates rise to the levels when NLY was created then this business model will then function as originally intented. Until then, this stock + dividends will not cover inflation while the market does. I just do not get it.
It has sold at a discount for years and always will. I have owned for years and have a small total return loss. The problem you do not recognize is that in hedging out the risks of a damaging big movement in rates, which is very expensive, they cannot earn net what they are paying in dividends. So you will get your 10%+ coupon, as will I, but the value of the leveraged portfolio will continue to erode slowly. And you say then I don't care because my yield will go up. Not true, div will be cut a bit and yield so stay the same. Management salaries are huge, and hedging costs a lot. If you hedge out ALL risks you are guaranteed to not make any money, so they make a forecast and hedge out accordingly. I do not think any severe decline or crash is in the cards. For one think management would never position for that to be possible because it would be killing their golden goose! But total return will be perhaps very low in no way anything like current yield. Will it beat an s&p total return, or even a 2.5% bank cd? Maybe by a bit, maybe not.
Well, if the PPS went up to $13 a share I'd make a killing, so that would be extra neat. But I'm satisfied pretty much interminably if it hovers around $11 a share and keeps paying out dividends.
I will be reinvesting my dividends, but not adding any more fresh money to it. I have about $43,000 of NLY in my IRA portfolio. I like the dividends and don't have any plans to sell as I see this as a long term thing.
This is a financial board for NLY, not a forum for you to present whatever your political views are. Move on.
The problem with that is, "what are you going to do with the money?" Bonds will be hit with any rate increase, the stock market is high, do you feel safe putting money in at these
I'm holding, but the PPS has dropped over $1 since I bought in. The divys have that covered, but without any gains, it's a mute point. If things don't turn the corner by year end, I'm out.