I am new to TWO. I know it just went ex-div, ex-spinoff. How low can it go here? Will the weakness continue until we know what the next dividend will be? Thanks for any one's help that is knowledgeable.
If you are going to be a long term investor, the pps at the moment shouldn't make a major difference. The yield is excellent and the stock is in a good market segment so you may consider buying some here and buying more on dips. No one ever buys at the bottom or sells out at the top. I have 2 positions and will add a 3rd on any significant drop. If no drop, all the better.....Good luck!
I would say a good entry point here would be when the yield is 13.5% or higher. Or buy another good Mreit, at 1X book that does yield north of 13.5%, like MTGE or WMC that have a real good reputations for consistant dividends, as well. Two is a real good stock buy at $9.75(at their current dividend level), To risk your cash for the return on TWO now, you are better off with a different Mreit that yields more or a preferred a like agncA for the safer road.
I bought 1000 at $12.09 (as I recall) and sold at $13.90 for roughly an $1800 profit...The dividend would have given me less than that and of course you get a drop in the pps...The div will be less now that SBY has been distributed so it remains to be seen how low it will or can go this qrtr...And of course they just issued a secondary offering...For me (on stocks such as this) I like to ride them up close to the X-date and sell; then repeat the process after the div and/or secondary......I'm looking to re-enter below $12.30 or there-abouts...good luck to you
If you'd waited until Thursday (ex-div date) you could have sold for up to 12.77 and collected a 1.29 total dividend, for an effective price of 14.06, making your profit almost 10% bigger.
Me, I waited until Monday and got blindsided by the pointless drop in the market, so now I'm still sitting on my swing-trade shares hoping for a pointless pop in the market, and hoping that we're not looking at a local bear market as the doom-and-gloomers' nascent negahyping starts to take root.