This is old news....Cramer likes NLY in his trust now. 2 yrs ago he had nothing good to say about NLY ..now its his baby. Not much difference between the yields of both HTS & NLY. A total toss up. A ROSE IS A ROSE IS A ROSE.
HTS closed down a buck today at $30.59, compared with 26.08 on March 4 (the day this thread started. There were several dividends paid between March 4 and today as well. That's about $3.40 of dividends. You would have been up slightly under 8 bucks if you bought on March 4 and held. ;)
If you're a chronic worrier about interest rates, or need a stable dividend, mreits are not for you. But if you can ride the roller coaster they'll make you a lot of money over time.
Cramer has been wrong on NLY and cost viewers money. I think that is one reason he never says anything good about Mreits. HTS, NLY, CMO etc. are overly complicated for many viewers of Mad Money. These stocks need to be carefully evaluated and followed and it's easy to make mistakes. I value the intelligent message board for NLY and find it tremendously helpful for raising the various issues regarding NLY and other mreits.
Cramer does not think that HTS can maintain their dividend at this level....if he is wrong...and "He has been wrong a lot of times"...HTS will look very cheap at it current price...! My opinion...even a small dividend cut would still make this stock very cheap and a great buy at it current price...!
If you think this is cheap, take a look at the Aug puts...Rather than buying the stock now, i would sell the Aug $25 put for $2 and just wait for the shares to come down to a decent value.
August in only 5 months away so the $1.90 is almost as much on a pro-rated basis as you would get for 2 quarterly distributions of $1.20 each for a total of $2.40 in 6 months.
5/6 of that is about $2...you are in assence still getting the divvie and also getting the shares at a cheaper price. I plan to sell some tomorrow unless the stock moves up big time.
good luck to all!