Glowing comments? Interesting choice of words. And I thought I was just exercising common sense. How well do you know NLY business. Are you one of those people who is just buying something hoping that it will go up? Or do you actually research the exact workings of this business. I did my research and maybe that's why my comments seem so glowing to you. MREITs are not really designed to appreciate in price. Their purpose is to produce high dividends.
For your information, I am holding NLY for over 5 years now and though I am down about 35% on it I collected enough dividends to almost break even. Is that a good performance? Of course not. Is it going to get better in the short term? It probably won't, especially if Fed decides to raise rates when Europe just went negative on their rates.
So here is my glowing rationale for holding it. They've been around for almost 20 years so they lived through huge rate drops and hikes. Their price will drop and rise and hover. I will average a little bit more if it goes down to 8 or 9. And I will keep collecting dividends (in my IRA account of course). Even if the price will not recover, in 5 years I will still log at least 5-6% profit. It may not seem like much but it is definitely better than getting 0 percent the banks are offering.
well actually, I sold puts last months which were exercised, I think I'll keep them though, maybe sell calls against them.
Absolutely, I bought more. I've been in this position before with other good stocks , and then kicked myself for not buying more when everybody else was selling. Bank of America is a prime example. I sat there and watched it when it was down to $5 a few years ago and didn't act on it...where is it now... $16!
I was looking to get in again if it went to 8 or 9 but you all have me thinking because I am in a taxable account . I need income and it is hard to go through the change in the interest rate curve . Been nibbling at FSIC as they have stated a rising rate environment would be positive for them . However I have heard the same about NLY that the wider the spread the better they like it .
yes i am up on distributions. thought that it would hit 10 on friday and it would have sold off ,but it didn't. So we will see what this week brings. good luck gq
NLY is absolutely useless and it costs me money. I had to recoup those losses by playing Ultimate Stock Alerts (find them in Google)
NLY was woeful, almost lost everything. The guys over at Ultimate Stock Alerts (they are in Google, do a search) were awesome in helping me save the day
April 30 dividend has arrived in my IRA account. The money ($1,134) automatically invested via the DRIP in more NLY shares at 10.04. My cost basis is lowered. The next dividend will be larger. The world hasn't come to an end.
Right you are srmedusa! I have been "hiding" and holding REIT's in a ROTH for years now. Along with MLP's and those pesky telecoms who also show a ROC in the final tax treatment of distributions, in some cases as high 80% of overall distributions. I only keep "qualified" dividend stocks in taxable accts. nowdays.
Bobby, you stay with your buy and hold and, reinvestment of dividends. Your day is coming. This dog will take you down when the rates starts moving up. I was in this dog for 5 years, felt good getting out with a slight gain, and if inflation had moved to the 2% level I would have lost money, I thought it was a sound investment, it just takes time to realize that this stock does not work in rising rate einvironment and the super-well managed leadership do not know how to manage in a rising interest environment. This company has never delt with a rising interest environment, Look what the stock price has done is a stable low environment. The final straw for me was when they decided to change the salary structure to hide their compensation and get lofty salaries based on the size of the mortgage portfolio and not performance. Your day is coming. Time is your enemy. Posting my experience to help those that do not understand the danger owning this stock.
NLY cost me an arm and a leg but luckily the guys over at Ultimate Stock Alerts (look them up in Google) save my bacon