Annaly Mortgage Management, Inc. Announces Solid Fourth Quarter 1998 Dividend
NEW YORK, Dec. 21 /PRNewswire/ -- The Board of Directors of Annaly Mortgage Management, Inc. (NYSE: NLY) declared a fourth quarter 1998 dividend of $0.305 per share of common stock. This dividend is payable on January 25, 1999, to common shareholders of record as of December 31, 1998.
"Annaly Mortgage Management, Inc. continues to validate its investment policies with another quarter of steady dividends. The Company has demonstrated an ability, in rising and falling interest rate environments, to reward its shareholders with strong quarterly dividends. As Annaly Mortgage Management's track record has unfolded during its two years of operation, we would hope shareholders, both old and new, will recognize the value of our Company," stated Timothy J. Guba, President and Chief Operating Officer. The Company has proceeded with the stock repurchase plan adopted by the Board of Directors on June 25, 1998
I have added to my position in NLY each time it has dipped below $8. I got 5000 more just last week at $7.75. I wish I had bought 20,000. With a solid dividend and investment strategy, why hasn't NLY attracted more investor interest?I suspect that NLY's repurchase plan kicks in around $7.75-8.00. Otherwise the price might sag lower just for lack of interest. I'm reluctant to buy too much now for fear that the price will be lower when the repurcahse plan is discontinued.Please give me your perspective. Also, since the whole mortgage REIT industry seems under valued, are there any other companies I should look at.
AXM is Apex Mortgage. It is a mortgage REIT that only purchases AAA MBS securities. The REIT is managed by TCW, which is one of the best MBS money managers today. Their strategy is to buy fixed rate MBS and fund with REPO's. The hedge themselves with interest rate swaps (unlike NLY) so they will not get the benefit of further rate reductions. But their dividend is sound with 100% of it comming from taxable earnings. Check them out. I looked at 8 motgage REITS that focused on non-commercial mortgages, and selected NLY and AXM.