Say what you will, but a 7.7% dividend, in this business, in this economy is unsustainable.Everyone flocked to C when it dropped like a rock, for the dividend, everyone flocked to BAC when it dropped like a rock, for the dividend.The dividend is unsustainable. Period.JMHO.
One good thing is when it get's to $20 it will only have a 5% dividend...... if they don't raise the payout.
I guess that means it's been unsustainable since 2004, even through the 08 financial crisis. By my calculation that means it'll be unsustainable for another 8 years or so.
The investment house opinions of NYB I've read say it's fairly safe. A dividend drop would hit them hard. I don't see it happening unless they are hiding something or have something better to do with the money. Neither seems likely.
Please provide your support. NYB's risk characteristics are no where near C or BAC or any other larger financial institution in this country.I agree the payout ratio is high, but the dividend is sustainable. The only reason I would think to cut the dividend is if an interesting acquisition opportunity comes in and it would be a way to preserve capital by not issuing shares at depressed prices.