For those of you too lazy to listen to the 4th quarter earnings conference call or read the transcripts let me give you an update.
"Let's take a moment to discuss the fourth-quarter dividend. As you may recall, this dividend included taxable income from the contribution of our single-family homes to Silver Bay, as well as from realized gains from our agency portfolio repositioning, which Bill will comment on later. The $0.55 dividend was also, we believe, important in terms of timing for our shareholders, given changes to tax policy in 2013. It should not be taken that this dividend level is representative of our ongoing earnings power."
My guess is either a return to the $.40 dividend or down to the $.36 dividend.
Another topic being heavily mentioned is the distribution of the SBY shares
"Another important accomplishment in 2012 was the contribution of our portfolio of single-family homes to Silver Bay in exchange for 17.8 million shares of common stock concurrent with Silver Bay's IPO in December. Since the IPO, the shares have appreciated approximately 10%. These shares are subject to a 90-day lockup, which expires in mid-March. As we discussed previously, subject to the approval of our Board, it is our intention to distribute the Silver Bay shares to our shareholders by means of a special dividend at some point following the expiry of the 90-day lockup on those shares. We will continue to keep you advised if and when the Board should make such determination."
So what they are saying stay posted they will announce at a later date what they are doing. LET ME REPEAT YOU HAVE NOT MISSED ANY DIVIDEND OF SBY AND ARE NOT ENTITLED TO SUCH IF YOU SELL YOUR SHARES. They will set a date of record just like any other dang dividend. If they were to distribute every single share they are holding of SBY then For each share of TWO you own you would likely receive .05957 shares of SBY. The math for this is 17.8 million shares of SBY owned by TWO, divided by the 298.81 shares of TWO outstanding. REMEMBER THEY HAVE NOT SAID HOW MUCH SBY THEY WILL DISTRIBUTE IT IF THEY WILL AT ALL. They said it is their intention to, with board approval. So you can't know this for sure.
My sentiment is that the stock is over priced and that's why I sold my position on Tuesday. With the plan to reinvest later when the future dividend and the SBY dividend is more set in stone.
I like TWO as well, but the Silver Bay investment was the primary reason I didn't invest. I was watching CNBC, and Brian Taylor of Pine River Capital Management mentioned Silver Bay. He continued to discuss Silver Bay's play in the Phoenix metro area. Currently, living in the area, I am suspicious of the existing housing market in the Phoenix Metro primarily due to the massive overbuilding pre-2008. Although SBY has assets other than in Phoenix metro, I am generally hesitant to invest in TWO at this point. Again, much of my observation is based on anecdotal evidence, but I agree with your sentiment.
I appreciate this post. Very informative. Not really sure why everyone is so angry at you.
I for one will hold on to TWO since I bought in around the $10 mark, but I'm going to stop Div reinvestments for the time being.
I sold at 12.60, this worked out to about 1.10 per share of capital gains in one month. I have no intention of repurchasing the shares above book value. I have already reinvested the proceeds into more attractive investments
I guess my title was a little harsh, but some people get tired of seeing a million questions about when they get dividends, what the dividend will be and when SBY will get distributed. All it really takes is a tiny bit of reading.
If TWO does go back to a .36 cent dividend, that is approximately 12%. Do you know of any other REITs that regularly pay 12%? TWO has been performing something like that all along. I mean, LOL, that's still a really good dividend. And there is no reason to believe they will make such a reversal.
If they keep paying a dividend like that it is highly likely the share price will go to $20 which would still give it a higher percentage return than most aggressive REITs, the vast majority of corporate bonds and an even larger majority of other dividend-paying stocks.
What is really funny is that you started this post by calling people ignorant, yet you make about the most ignorant remarks imaginable. I think TWO offers both a very high dividend and a very good potential for price gain.
Good logic, and people wonder why we can't solve issues like upcoming sequestration, the fiscal cliff, immigration reform and many more important topics. If someone has a valid opinion and provides detailed then we MUST, (1) use profanity, (2) attack the person themselves, (3) tell hem to leave. I forgot most American's don't believe in freedom of speech.