AI's future has been written several times before...Drops to near or below $26, maybe $25.50 Buy some and watch earnings the end of July or early August. If dividends appear secure buy on margin, use the kids savings, borrow from you in-laws or whatever it takes and hold 'til $28. I have been selling been selling just before ex-div because some times the price immediately drops below where it should. However the ;last couple of ex-div days the price has hung around where it should be. There is considerable advantage to hold through ex-div to get the qualified dividend. In any event I will sell around ex-div date use the cash for another short tern, maybe EFC, and repeat the process. Look at the chart. In March they tie the ex-div date with a secondary offering...use your own judgment on that.
The guys on the AGNC board used to have an acronym BATSAT..."buy at twenty eight sell at thirty". Same principal applies here.
I have owned AI since August and am pleased....I believe AI has a very bright future...Strong mgmt. team..Strong balance sheet ....Trades below book value....Diversified in their investments...Int. rates low...Great - secured dividend.......Would like to see investors get on board AI because of these reasons and not just the dividends....ALWAYS runs up before ex-div. date and then sells off...I am a believer!! WHAT do you think???
Purchased in Jan 2013 ~23/share. Doubled down Feb 2015 ~25/sh.. Letting it drip. The added annual dividends for the drip are more than most people's raises in a year... Building a fairly hefty annual dividend stream for retirement.
Any drop back to the 25 area and I will be buying again.
Lunco, the qualified dividend is a nice bonus.
This is holding up much better than it has the last couple ex-div dates.
I have written many times on this MB that with AI having 12.78% yield, selling as at a significant discount to BV, comfortably covering it's dividend, and paying a qualified dividend, what's there not to like?
AI did pretty well today, (EX-dividend) and I believe that as more investors become familiar with it that it will trade at lease 10% higher than it is trading today. But if it doesn't, I still happy with the dividend, the tax treatment, the discount to BV and with the company.