How about because you can buy Chimera (cim) at 3.85 a share and it yields the same 17%?
Btw...Cim is a offshoot of NLY, So if your going to invest in NLY...Why pay 14$ a share when you can pay only 4 bucks a share with the same yield.
Both are reits and both pay big yields in Divis!
Long FTR & CIM
CIM is fine but lack of history on payouts means a little shaky but it has decent volume. NLY still had the best payout history of them all. Capstead possibly but something about them makes me uneasy!!!!
Good point on the offshoot from NLY - was it a spinoff???
CIM has a nice flat line even since jan 09 through the turbulance so no reason to think it has much downside risk. But it may have no upside wither but who cares with that yield.
The point also is that cap gains preferential rates are going away soon. That's almost a certainty ... Obama won't renew them because of massive deficit and aggressive tax policies coming.
So the "premium" for investing in straight divs as opposed to payout (trust) is moot.
Watch your tax brackets folks and try to avoid AMT....that's important!!!!
There's no question to me high divs are the place to be in this anti-growth market. Yeah sure today is up but so what???