The answers to both of your questions are "yes". If NAV ends 07 at say $7 (market price will be whatever it wants to be), the 08 dividend will be about $.175/qtr. If one assumes that banks, in general will survive, BTO will retain more NAV on the way up (due to lowere div). Exact opposite of 2007 when falling NAV was really hurt by relatively high qtrly payout. May be a decent entry point after this coming dividend.