1, The SPO is right before the div. issuing 19% more shares, you're essentially paying 20% bigger cash div, so this costs as much as a 38-cent div with no SPO intervening would.
2. Income preservation. The more you hold back, the easier it is to keep the cash div steady in later quarters. Yes, TWO is not really good at that. But maybe they're learning from AGNC. Everyone should.
I fully concur; this stock has been good to me avg. in @ $12.59. If the numbers on the SBY distribution are correct I think this will set us up for a good run; this company has been forgiving after SPO's after the drop. Folks, I anticipate a drop and will pick up another 1000 shares. I don't think this is a big deal if you are in this for an investment vs. a trade.