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Annaly Capital Management, Inc. Message Board

  • saojorge2006 saojorge2006 Aug 5, 2010 7:41 PM Flag

    15% Dividend

    15% seems hard to believe has anyone actually seen payments at 15%...How can any company do this? Any help would be great!

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    • It's no free lunch - your "dividend" is a distribution partly from your capital base and is fully fully taxable at the highest rate. Also there is downside risk in this (more now as this is no where near the 52 week low) and there is risk of distribution cut as well.

      The IRS thanks you now or if you have a tax free account they will thank you later. Any way you look at it you will be donating to the Government in a large way.

      The way it is ...
      No free lunch....

      Cramer pumps it and that's fine but you gotta know the reality.

      This isn't a gift - if it was you would see HUGE institutional buying...MF's would be lining up among other entities...

      They aren't.....

      There are worse investments sure but this isn't as good as a pure growth play like Apple!

      You want to face reality?

      Compare RANDGOLD TO THIS...

      I won't give you the comparison but it will make you SEE what's NOT going on here.

      About 100 to one better..

      ESRX another one


      You can take your divs and shove them up your ***.

      I'll take growth.

    • It comes from the Treasury spreads, banks make their money this way too. By borrowing at low rates and lending at higher rates with leverage, that is.

      Go to Annaly's web sight and read all about how it's done and while you're there note how these mortgages are all fully FRE/FNM guaranteed for mortgage and principle.

      FRE/FNM recently bought back some of the mortgages, the failing ones, thereby confiscating any increase in value of these Mortgage Backed Securities.

    • They pass earning through to the shareholders. This keeps them from paying taxes similar to a S Corp. As long as interest rates stay low Annaly makes good money, if interest rates were to move up then the company would make less. They borrow at low interestest and invest at a higher interest the difference is their profit. Also the high dividend helps to keep the stock price stable. Interesting company but do your homework before jumping in.

 
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11.30+0.03(+0.27%)Jul 22 4:00 PMEDT

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