I let a free trade or the loss of a free trade cause me to have poor judgment on this trade, bought in to high, wish now I would have put a little bit more money with this and bought LNCO, steady monthly pay-out, plus should be better days ahead for pps growth also, may get a chance to sell out here if there is a increase in pps before divi. pay-out, as you said, not looking good for that right now.
Why would you expect a "run" in a 13% dividend stock that pays out almost all of its earnings quarterly and has no stated dividend policy except "the complete discretion of the BOD". You might get a run in BABA but with AI it's just steady as it goes. GLTA
Thanks Ken - no not planning on selling. Actually just bought more about 2 wks ago... Just expected more - some sort of a run up after div. announcement...
Random fluctuations in the market. Some folks are selling because they want to buy AAPL or BABA or who knows what or why. Unless you were planning to sell who cares.
While i would like to see a dividend increase at some point in time, I don't expect one until next year at the earliest and probably not then. Since AI is a C corporation and therefore has no dividend requirements like mREITs have which means that AI can use what would otherwise be paid out in dividends to grow the company. Also, I don't think that it makes too much sense to have a follow-on offering which is quickly followed by an increase in dividends. Finally, by not increasing dividends, AI will be in a better position to make necessary adjustments as interest rates begin to rise.
Just my thoughs
Zacks has forecasted substantial revenue growth going forward, next quarter is a good time to increase the dividend to offset the fear a rising interest rate environment will have on the share price. Until the recent fed meeting eased fears of an immediate rate increase we saw the impact an anticipated increase. Hate to see what an actual increase would do.
You`re right, She did say rates will stay low through 2014, was also said people have more confidence in Her over Berney, just hope it continues to hold up.
I think she has already made her remarks. I'm not sure what more she can say that would change anything. GLTA
The answer is "yes". It was quite a ride but I ultimately broke even when the company made payments to the smaller shareholders last year. Hope you came out OK.
Last year 3rd quarter divi info. 9/18 was the announcement date so this year it should be soon too.
9/26/2013 9/30/2013 9/18/2013 10/31/2013 2013 $0.875 Regular Cash Quarterly
Thank you for your analysis. At a 13% yield AI is an attractive income investment. I like the qualified dividend feature of this company.
lead to today's sell-off of mREITs and AI.
The same thing happened at the end of July; interest rates spiked and mREITs, along with AI, saw significant declines. Interest rates then began to pull back through August because of the slow down in the European economy along with the flareup in the Ukraine and other factors we are all aware of. Will it be different this time. Who knows? I certainly don't. But, what we are starting to see now is a steepening of the yield curve as long-term rates increase faster than short term rates which is a positive for the economy an for the earnings of AI.
With sell-off that we have seen this week with the follow-on offering and today's interest rate spike, I find it helpful to go back and look at where we have been and where we are now. Here is a link to a YTD chart for Ai
So while the pps for AI goes up and down, what is important to me is the qualified dividends that I receive from AI and I don't see anything that would cause me to be concerned about those dividends continuing, especially as the economy straightens and the yield curve steepens.
I believe it is important to remember that as the economy improves and as we move towards a more normalized interest rate environment, AI's earnings will also improve. They do much better in a normal interest rate environment where the yield curve isn't flat than they do in a financial crisis such as we had five years ago and from which we are still recovering.
Normal is good and a growing economy, as reflected by more normal interest rates, is good.
Thanks lunco. Your response makes a lot of sense. I've held AI for a few years and recently added more during the recent stock offering. I hope AI follows the strategy you've described.