Many have stated they will sell before ex dividend day, so if they are a little worried about getting their price, or perhaps a new offering, they may be getting out early instead of waiting til Thursday or Friday to sell. It seems to me some jumped ship in the $12.70 to $12.80 range a week or so ago. JMHO, but I will stay for dividend and watch the quick bounce back in price after no new offering.
Insightful comment, thanks a lot! But, what if there is a new offering coming ... ... lots of MSB REITs have done so recently ... ... and there is a surmise that Fed may withdraw its QE2 sooner than originally conceived.
Good strategy, I think. I often sell a day or so before XDIV, especially in my cash acct; but I have noticed on these hi div payers, if they don't go up in front of the div, they don't go down much on XDIV. This time it might be better to take the div, and wait for a rally on the afternoon of XDIV. I have seen this over and over but it makes no sense. People will buy it up on XDIV at almost what they could have gotton it for a day or two sooner and gotton a big div also; why??? It is amazing how dumb some investors can be.
I think today; the house action on Fan and Fred is the cause; already been sliced and diced; they can't get rid of them very fast; and they know that; this is politics in action. I actually agree with more regulation on the GSE's, but we should keep them; that approach may win out in the end.
I fully agree that it was the action in the "House" that caused the drop today. Change makes the market nervous, however, as the CEO of AGNC explained in the last CC when asked about Freddie and Fannie going away; How would you feel if you were Dr. Pepper and you found out that both Pepsi and Coke were going out of business. He was looking forward to their demise since they had a comparative advantage in the market.