WMC dividend boost bodes well for MTGE dividend upside potential
MTGE did a large offering AFTER agency MBS spreads had widened a lot in February. On top of that Gary Kain said he would allocate a lot more capital to the forward roll market which carries even juicier spreads (and will for the duration of QE3). With prepayments being very low given MTGE's prepay protected agency book premium amortization expense should also be low. Higher dividends here we come.