Congratulations to all who added Friday (08-17). I took advantage of the 2.16% drop to open a new position. At the current distribution rate of 1.20, the yield at Friday's after-hours price is 16.30%, an amount that blows the underpants of Grandma's CD.
And if you didn't get in at the low of 7.24, take heart. No one can see an exact bottom. If you were within a few cents, you've done well.
Another comforting thought (with respect to newly added shares) is that Armour has already suffered four dividend cuts since 2010 going from $4.80 to $4.32 in the last quarter of 2010. January of 2011 saw it cut further to $1.44 and then cut to $1.32 in the 4th quarter. And then of course last April 2012, we see the current distribution rate of $1.20.
However over much of that time period, ARR has been able to stay within a trading range of roughly 7.00 - 7.50. A pretty amazing feat for having had so many dividend cuts.
Will the trend continue with more dividend cuts? Only time will tell but it still beats the pants of Grandma's CD.