That return is assuming a $2.00 divident for the next 4 quarters at a price of $17. More realistic IMO is a divy of about 1.80 in the next year, and that may be optimistic. That would be 10.5%, also not bad. My main concern is in 2 quarters, the march divy, after interest rates rise at least 2 more times and mortgage rates stay low. That seems a setup for a really bad divy quarter. Any thoughts on this scenario?
The fact that 75% of NLY is in ARMS means that a substantial proportion of their holdings should be able to hold the spread providing the existing divy. They are also largely into AAA. Obviously nothing is guaranteed, but I suspect the divvy might hold up or only take a very small hit. They have really great management and they are very nimble as history has demonstrated.
I'm new at posting messages. I appreciate this particular board seems on the up and up. Some are full of drivel and hype. My question is where do you obtain serious info on Nly? Where obtain percentage of APRs? etc. Thanks and keep this board as it seems to be. Helpful. chipchip