Fair comments. Take a look at Msg: 198182 on the NFI bo [ard. Hhill51 is a guru that has been designated an 'expert' in ceretain court cases. So while I am long NLY, I take Mr HIll seriously, and would like to hear what other longs have to say about the sensitivity of the NLY portfolio to rising rates. [see p.30 of the Q for starters.]
Management has said that NLY is positioned for raising rates and that if rates rise, earnings will also rise. That said, if rates rise, my guess is the stock price declines. The market is not going to wait to see if NLY's management is telling the truth, the market will selloff all financial stocks.
This is laughable - who cares about the sensitivity of NLY to interest rates - are you planning to hold NLY for 3 months or 10 years? Just buy, hold, and re-invest the dividends.. Everything else will sort itself out!!!
I believe you both have a degree of reality in your conclusions. REITs are not taxed like other corporations. Approx all REIT profits are passed on to share-holders in the form of dividends. While other corp profits are taxed and then the share-hoders' dividends are taxed again. I understand this double taxation is the rational for taxing these non-REIT dividends at a lower rate. And the REIT dividends at the individuals regular rate.
As you say, the fact that corporate profits are taxed is the rationale for lowering the individual's tax rate on "qualified dividends." Actually, over 90% of U S corporations pay less than 5% of their earnings in federal income tax. The new low rate was just a gift to the wealthy minority who collect significant "qualified" dividends....I'm happy to say I'm enjoying my tax break and hope the under classes don't catch on any time soon!
mbbf49a and others, Kerry could have come home and bitched about the way LBJ and his (wiz kids)had slected the targets to be bombed, tieing one hand behind our backs, I'd have no beef with that. But I question his 3 trips to Paris to meet with, some of you might know. Or soon will know. juststeve47