It all depends on how big your life insurance policy is and how much she is going to spend. $500k would buy about 52,000 shares which would pay about 60,000 a year, which could be taxed heavily as the REIT dividends don't qualify as qualify dividends and the 15% rate. Of course if you have NLY in your ROTH IRA as I do, then it won't be taxed at all
I am going to buy some tomorrow,,,so my wife will have retirement income after
I am no longer here to play in the stock market,,,how many shares will she need
to live a comfortable existence?? maybe a hundred (shares) a month?? a year?
Sentiment: Strong Buy
NLY is @ a 10 YR Low. How is this a great stock to own? It's all-time low back in 1998 is $7-ish. Although it does invest mostly in government mortgage-backed loans, I don't see how anyone would want to purchase this DOG of a stock at anything above $10.00. Right, now the risk is somewhat worth the reward (at the current $9-ish price), but with interest rate increases looming in December, it's no wonder this stock is remaining static (with under dime per day movement up or down). Even I don't fully understand what the heck this company does or how it functions, and I've watched it for 5 years. First off, you would need a lot of shares to benefit off of the dividend. What's $5,000 a year in dividends when you have to invest $40,000 dollars in one stock to obtain it? If there is an interest rate hike in December, this could make the stock drop over $1.50 a share, landing around $8.00 a share. You would have made NOTHING, and locked your money up for NOTHING. Charts don't tell you everything, but if a chart shows a consistent drop through the ups and downs of the economy it's literally SCREAMING downwards. I put a buy price at around $8.00 a share.
It will look fantastic because I get reinvest the dividends at a lower price, and it won't take long to show a net worth increase
I never said NLY or any other stocks are risk free. As for why only 1,134; I have a balanced portfolio and spread my monies across bonds, bond ETFs, Stocks, etc.
Yield on the 10 yr now dropping significantly. I say mREITS gap sharply up tomorrow.
Sentiment: Strong Buy
Its been very strange that we continue to hear that short term rates will go up for mreits and long term rates wont but magically short term rates will go up for banks and long term rates will go up for banks
so the 2/10 and 2/30 and 10/30 spreads will widen for banks but tighten for mreits.
I hope they are buying some here.. Since they authorized up to one billion in stock buy back I see this as perfect time enabling them to buy back many more shares at this low price.
I think these guys are smart enough to buy on the cheap after all that kind of falls into play with handling money.
I would love to see them pull a 100 million plus shares out of circulation...
Raise dividends and stock price as a result.
Buy em up NLY lets get this stock headed back up where it belongs
It's amazing that dividend is up, portfolio is in much better shape but the stock trades below 2008 values. i do agree you will see a dive in the stock on a rate hike and that will be the time to buy. if rates are rising due to an overheated economy, it should take asset values with it and nly portfolio.
really ?? This stock will be $7 by Jan 2016. Even after Fed raise the rates, the talks of another rate hike will not stop. In the mean time, this stock will be punished by year end tax loss selling.
Short interest in this stock is miniscule. Why is it that when people think their shares are too cheap, they come up with a short conspiracy? Longs sell shares too.
Interest rate increase will increase spread which equals more money for mortgage lenders.
As cost of mortgage remains the same increases in interest equate to greater profits.
Also the average turns over a house every seven years which in turn redoes any fixed long term mortgage.
NLY is positioned for such and just as the banks wants to see increase in spread.
For example here is what Bank of America says...increase of 100 bases points = 4.5 billion dollars in revenue. Straight from ceo's lips.
So this fear mongering has created cheap shares at 15 year low yep I say load up
if you look at 3rd Q carefully you will find things are about to improve in the earnings dept.
Down trend coming to an end you will see
NLY is a loser. Just look at the chart for the past couple of years and you'll see a complete under performing stock for sure. Dividends do NOT make up for the loss of your investment.
Sir, Yellen and her flunkies are not impelled by reason, but by ego and bravado. They distort the facts to fit their "models" and preconceived notions, their ideology. They are incapable of objectively assessing facts, data, and evidence.