....................HERE WE GO AGAIN,,,,,MORE TRASH !!!!!!!!!!!!WITH PENNY STOCK SOMRTHING ????????????
Rates are going nowhere for quite a while. Todays news:
Forecasting firm IHS Global Insight predicts that real median household income — perhaps the best proxy for middle-class living standards — won’t reach the prior peak from 2007 until 2019. Since the numbers are adjusted for inflation, that means the typical family will wait 12 years until their purchasing power is as strong as it was before the recession. That would be the longest period of stagnation, by far, since the Great Depression of the 1930s.
Sentiment: Strong Buy
well not really
you hope that mbs is going sideways to help you collect those dividends
but if mbs moves sharply up or down then price action will certainly trump divi collects.
but I guess it depends on your time horizon
The X-dividend date is September 29, On that date you would buy X (without) the dividend.
On that date all open orders, except DNRs, will be reduced by the dividend amount. (30 cents.)
Then the price will be driven down another 30 cents or more. Last quarter, NLY went down 75 cents.
I think that the excess drop is the result of a combination of a lack of interest in the stock and the panic of the uninformed. Last quarter I was able to buy at 11 and enter into a hedge (Selling calls and Buying puts) All my shares will probably sell in January at 11 for a nominal net gain. I'll get 2 dividend payments and then I'm out. Unfortunately, there are no $11 leaps.
Given NLY's 10% + dividend yield... profits... book value above share price... I'm content to sit on the shares & continue collecting the dividend every quarter. I just wish the Board would resume its share repurchases.
Mgmt has the option to retain some earnings and pay a special divvy end of year, as long as they meet the final 90 percent goal be the end of the year aka UTI. They may have put some aside for that.
Didnt you see bonds heading down and nly is made up of bonds in a sense.
tlt went from 118 to 113 4% - mbs down over 1 pt and nly is levered mbs
what did you expect? assets falling and stock to not fall?
As i said 30 cents usually on a Thursday:
The Board of Directors of Annaly Capital Management, Inc. (NLY) declared the third quarter 2014 common stock cash dividend of $0.30 per common share. This dividend is payable October 31, 2014, to common shareholders of record on October 1, 2014. The ex-dividend date is September 29, 2014.
See my post 31 July. Now then: 10%div equals appx 2.5%per quarter. From 11.8 in early Sep (I predicted 11.5 optimistically)to 11.2 in mid Sep equals $.60 equals appx 5%. Do DD. Buy now to capture (unreduced $0.30??) for exdiv date next Fri or following Mon. Watch Yellen. If pattern holds true, look for rebound to 11.70 late Oct. Clue will be steady 30c.
Trick or treat
I think it is you who are confused because you said the absolutely opposite thing. Why don't you read up on Mortgage REITS and where their dividends come from.
NLY is not a regular company that makes a decision on how much dividends they would pay. Their dividends are exactly a function of their earnings. They MUST distribute most of their earnings via dividends in order to pass paying taxes to the shareholder. If their earnings went up, as Next Divi suggested, their dividends should also go up.
Next Divi may be wrong with his/her calculation and NLY earnings didn't go up. That would explain the price drop.
Apparently, your calculations are not meaningful. (See the price drop.) The dividend is not a function of the earnings. (No wonder you are confused.) The price tends to drop as people become anxious about the upcoming dividend announcement. (They are not able to duplicate your calculations.)
With Annaly (NLY), I'm content to sit on the shares... I'm confident NLY's share price will eventually rise by someone coming along and buying up the company or the shares reflecting the company's earnings & dividends. When either event hapens, Annaly's true share price will be realized.