Actually I think it will be much less in the first quarter. Since they paid out more than 100% of earnings last year they will have to reduce the first quarter based on the forth quarter earnings and then apply the 90% which gives us .126 and with the fact they paid out more then they took in last year of .03 not to mention another .07 that because of the limit 90% requirement that comes to .10 over. We could see them adjust some of that into the next four quarters this year which brings us to .101 or a dime. But even without the .07 and we applied the .03 to break even for the year we can get to .119 or .12 for each quarter subject to change. So my guess is we see .12 for the Q1 dividen.
15 if no offering before announcement
16 if an offering before announcement
Sounds counter-intuitive, but it's the way they've been running.
I think they'd like to get to a consistent 16 cents per quarter dividend if possible.
earnings for 4th quarter was .14 cents. it would be stupid to pay out more than they earned....
however, if the money they get from selling shares on the open market is enough to pay the difference in earnings...then they'll feel it best to keep dividend the same to show stability and hope this will either stabalize or increase the stock price.
Scoyle>>then they'll feel it best to keep dividend the same to show stability and hope this will either [stabalize] or increase the stock price. <<
If management were serious about increasing the stock price, they would quit trying to generate money by secondary stock distributions and obtain additional revenues by selling bonds. But to increase the debt would be seen as a black mark on the balance sheet. It would seem that the management is composed of accountants rather than the type who can keep an eye on the price of the stock and the health of the company.
I agree with you except that at some point, CIM's earnings and dividend payouts need to be brought back in line w/o utilizing extra cash that could be used to generate future increased earnings. I'd rather see dividends declne to the point that CIM can then sustain those dividends on a regular basis. Look at AGNC. They have consistently paid dividends and they are in line with earnings w/o using extra cash. Like to see .14+ consistent dividend and a more stabile price.