Knee jerk reaction AH. But a 16% div cut will not be welcomed when the market opens tomorrow. Let's figure this out. ARR (which is one of the worst Mretit's) keeps it's div at .07. But AGNC (which is THE best Mreit) cuts theirs.
What is wrong with this picture?
What is wrong with ARR? Well it is the dividend trend there dividend was 12, 11, 10, 9, 8 ,7 now 7 again, I sold all ARR when quarter declared paid monthly divy went from 11 cents to 10 cents. Do you think ARR has fooled anyone buy keeping the one penny a going on? Think not think BMNM think ALSK think ENRON think K-MART after the BK the old k-mart then think ARR & KEEPING THREE CENT AGAIN THIS QUARTER? May Be next quarter back to 5 cents dividend or 4 cents dividend to make up management fees they had to give up this quarter as if 35 million was not enought? May be when you cut the dividend every quarter keeping it the same one more quarter is BIG news? Remember the beatings will continue untill moral improves is ARR'S best offer? Did AGNC cut the divy every quarter for two years? Think not?
Typically, the more money they raise, the more their managers get paid. American Capital’s external management company, which includes President Gary Kain and Chief Executive Officer Malon Wilkus, is paid 1.25 percent of the REIT’s shareholder equity.
You must be crazy - the move down the past several months has shaved 20% off of the prinicipal. The market expected a dividend cut and thought it would be much more than a 16% cut in dividend. The effective yield at closing price is 15%. Given that all REIT's took a hit with rising rates - this is not the disaster shorts have been predicting. Absent other news, this goes up 2-3% tomorrow.