I think it has to do with the REIT structure. NCT is no longer a REIT, correct? Therefore they don't pay 90%. I think my calculations suggest that the dividend is 38% less if I compare my presplit dividend to the current one. I think the dividend will increase over time. NRZ has increased, which is the only mortgage REIT to have done that.
I don't thiink there were any missing earnings. They had a large amount of uninvested cash committed to SNR investments and that wouldn't have been earning them very much. Now with the new large purchase announced that will juice the earnings.
"Perhaps the SNR earnings are for a partial quarter" I hope not because it would mean the missing earnings went to NCT I assume. That would make the 12 cent dividend difficult to sustain. Having booked my loss in NCT, I'll check to make sure the time limit has passed before I buy it back. A little puzzled why a company that announces a 10% dividend rate isn't treated better by the market.
My point was that that pretty number in Yahoo (yeah I knew it was wrong) isn't going to look so pretty anymore. Why NCT's divy isn't around 13% I don't have a clue. But as you know I was du? I mean unfortunate enough to have invested it all in SNR...
I sure hope you are correct b2b. However, if that was true, wouldn't they have explained that in the release? I thought they did with the nrz spin.
Is a 35 cent dividend from growing companies better than 60 cent dividend from a dying company in runoff? Everyone should have known there was a reduction in dividend coming. NCT's legacy portfolio has been in runoff for quite some time and the senior living assets don't have as high of a ROE as the legacy CDO junk. The question is, do you prefer to hold physical assets in real estate or a piece of paper with an IOU written on it?
Well, I had 24 cents a quarter as a dividend. I had missed the other income of 1.5 million which would put it back in line with the 23 cents announced this morning. I expect the dividend to go up from here once the cash on hand is fully deployed. Unfortunately it looks like that won't be accounted for until early Q2 2015.
is there is not a major sell off. Investors looking for safe yield may start looking at SNR. Just hope I don't get hit on taxes like last year from the NRZ spin off. I think that was around $2.40 taxable for every share you owned. if you pay 25% of that in taxes - you could look at it like it erased the taxable dividends for a few quarters. I have been involved in several reverse splits and they usually suck - management would now say you are getting 10% on NCT - what a deal. From the lower share price and reduced dividend they can look good every qtr by a slight increase in the dividend. It will take a look time to get the dividend back to where it was. I think at this point it will be SNR that will have to preform to make the spin successful.
Thanks b2b! One has to have faith in the FIG mgt which has does right by the long time holders. I agree with your posts on the NCT and SNR boards on this topic. GL!
Your math is right. No one likes to see a dividend go down even if it is temporary. HCP div yield is 4.8%, HCN 4.12% and SNR 5.4%. I think SNR div will trend higher after the debt is restructured and other efficiencies are met. GL!
What 50% yield are you talking about. I think perhaps you're taking Yahoo's number, which are WRONG as they neglect to factor in the splits in their divvy calculations. NCT now yielding 10%, which is fine. It's the 5+% for SNR that is confusing. Perhaps these SNR earnings are just for a partial quarter, as was NRZ's for their first dividend.
memeds, don't be so nasty to hopefully, a respected poster on this board for YEARS. You're the one relatively new here and no one berates you. P.S. NCT dividend was $.10 pre all spinoffs, NOT .06.
hopefully, in one of my smaller accounts I had 4k shares of NCT before the first 1:3 split, after 1,333 shares and after that 1:2 split 666 shares. I was getting 400 a quarter on the original 4k shares. Now I'm getting $79,92 on the remaining 666 shares of NCT plus 153.18 on the 666 shares of SNR = $233.10. $400.00 - $233.10= $166.90 reduction in total divvy = 41.7% lower dividend. Is that wrong?
U r ignant of math! Are yu part of FIG managment? divy was .6 pre flop!!!!!!
Thanks, you are correct. Between the two, the dividend decreased 41.666%.
I think you are forgetting the 1 for 2 reverse split that occurred on the same day as the spinoff. Pre-spin divvy was $0.60/share/quarter, not $0.30. Check the NCT website.