I bought my shares of AGNC on 3/5/13 (settle date 3/8/13) at an average PPS of $31.97. If I sold the shares today at current PPS of $31.67 (as of this writing) I make .30 profit PS. I still get the $1.25 dividend when it is issued on 4/26/13, even though I would no longer own it on 4/26, right ????
if you can't afford to lose money - THEN YOU SHOULDNT BE INVESTING. Period. End of story. If you can afford to take the risk, but MTGE right here .. NOT AGNC. MTGE has non agency which hedges more effectively against higher rates and allows the company to reduce interest rate risk in exchange for credit risk... swapping allocations back and forth backed on spreads. The net income at MTGE post SPO allows for a dividend increase to $1 per quarter. thats right... AN INCREASE. Look for it Q2.
Would you like to take a stroll through the comparison charts of MTGE vs AGNC, then get back to us on the effectiveness of MTGE at hedging?
Because in the 6-mo and shorter, they're not that different, but in 1y and longer, MTGE isn't living up to the presumption (mine included) that hybrid is a hedge. If the Fed is moving away from MBS buying as a liquidity camouflage, then pure-Agency should get more relative benefit, so that could be the way we should go.
You'd do better with an argument that MTGE is down more short-term (it totally failed to participate in the div runup, and sold off harder during this week's travails) and should be arbitraged back to parity with AGNC soon. Hopefully they'll join up on a rise in MTGE and not a collapse in AGNC...
That is correct. The shares trade ex-dividend (without the dividend) on and after the ex-dividend date. The dividend stays with the person who owned the shares at midnight before that date.
Also, settlement date doesn't matter to retail investors in general, unless you're working in a cash (i.e., retirement) account and you bought shares with unsettled funds from a recent sale. Then, if you sell the new shares before the previous sale settles (almost always the full 3 days), you'll be free-riding, and you will get at least a warning and maybe a 90-day ban from using unsettled funds, especially if it's not the first time you did that.