I am new to ARR and wondering when the right time to buy is. I have read a few posts and am thinking that now is not the time to be buying. I like the dividend and do not want to trade this all the time and run up my commission costs. Any advice for a newbie? I am thinking about waiting until just after the EX date then dipping my toe in the water. Do most people wait for the run up and then sell just before this goes ex? Just trying to get ideas on how to play it. Thanks for all your help.
Over the past several months, there has been selling before X date after run-up. Did not do this as much over this last cycle. They did dilute the security over the past few months with a secondary offering and it has come back to some extent. I have owned this for more than a year, haven't traded it and am in it for $7.00 so I'm almost even and have collected $7000. in dividends but sometimes it has been a rocky ride and there is always the possibility of additional issuance of shares. As you know, it has high borrowings but seems to be able to keep expanding. It reduced dividends after the last offering but still pays a very high dividend. I wouldn't either discourage or encourage you. I know this is a cop out but only you know your tolerance for pain and there has been some with this one. If you decide to get in, you may want to wait for earnings report very shortly due, I think this or next week. You can take a small position before announcement and add to it or unload it or buy more to average cost. If believe that the mortgage business will continue strong for some time and interest rates will remain low and ARR can continue growth and maintain dividend, it may be OK. But in any case, this one has to be watched. A few times I was down more than 10% and had a few second thoughts but I listened to my wife and didn't sell in a panic. One thing I do like is that they provide 3 month dividend schedule which is some comfort. As for an entry point, take a look at last 3-6 month prices a pick a point where you are comfortable and buy in increments. Hope this is helpful Good Luck!
This is a stock that you buy now and just hold onto it forever. Get your monthly dividend and save it or enjoy it. I have $7.06 a share invested in it and I an just about even on the PPS. I have received 10 or 12 dividends, and way ahead on income. I am a retired teacher and coach and a monthly check really helps. You do what you think is right for you. Good luck in your investing.
1st familiarize yourself with mREITs and how they work. If you are here for yield then you will end up making mistakes and lots of them.
Then when you figure out how these guys make money, grow, and their risks, ask yourself how much risk you want. For ARR note their hedging strategy and see if you agree. Also note their history (look up BMNM their previous company). Then look at the price fluctuations. If you have never experienced a SO or dont know what that is, dont buy until you understand it.
My opinion is dont touch ARR unless its below book. AGNC and NLY I would do slightly above book but not too much (I personally wouldnt do it until one is under book but thats just me). There are others out there as well but I cant cover them all.
You can get some good ideas from this board but you still need to sort it out and learn on your own. Im not as sophisticated as most of the investers on here. I have a small amount of ARR and reinvest, knowing it's there if I need extra income,im retired. Most of what I own are monthly dividend paying.You might want to check out GAUCX,and PHT. For a long term investment you might want to look at FCISX. It's been around about 60yrs. Just my thought the market is a bit high to buy much of anything. After a pullback I like FCISX at about 2.05. Good luck.
Well. rain or shine, ARR delivers.
Also, monthly dividends makes it more attractive.
Trading this stock around ex-dividend dates also makes sense, although a monthly dividend makes that more difficult, and I am not a trader of these; I will hold until I see the music stopping, and hope I see it a few seconds before the masses.