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American Capital Agency Corp. Message Board

  • reit_freak reit_freak Nov 8, 2012 12:59 PM Flag

    Alternate View: Dividend Acceleration?

    Don't misconstrue this as wishful fanboy grasping for any positive catalyst - I'm just lobbing a raw thought out here for thoughtful consideration: Can you envision a scenario where AGNC (and/or other high-dividend payers) might be ACCELERATING (increasing) dividend/distribution payouts in December in order to beat the fiscal cliff calendar (to get dividends/gains taxed at the current rates)?

    I cite today's news from Legget and Platt as an example (more of timing than amount, but surely an indicator that these things are being considered and acted upon in board rooms right now):

    "Leggett and Platt's Board of Directors announced a dividend of $.29 per share for the fourth quarter. The dividend will be paid on December 27, 2012 to shareholders of record on December 10, 2012.

    The company has typically paid its fourth quarter dividend in January. However, given the significant pending increase of the federal tax rate on dividend income in 2013, the company opted to accelerate payment into December."

    Again, just putting this out for discussion.

    Best of luck to all,

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    • AGNC divs are already taxed as ordinary income so there is nothing to gain.

    • AGNC dividend is not a qualified dividend. It is taxed as high as 39% based on your AGI. No REIT dividends are qualified for the special tax rate. No reason to rush payments.

      But since we are on taxes, it is the time of the year to sell you loosers for capital losses for tax purposes, those are still deductible, the more you loose the more you save in taxes.

      If you had a gain and you managed you money wisely, you should have spotted the $36 area as very very very priced along with the earnings trend dropping as a VERY OPPORTUNE TIME TO SELL. It still isn't bad, at $31, because what happened this past quarter, will continue for another three quarters of quantitative easing and yield spread will be halved if not quartered before it is all over. Work the numbers yourself, look at the $1 earnings drop this quarter, add 2-3 more quarters and you are at $1-2 in earnings, this is very very possible within 12 mos. with Obama getting reelected and Bernanke patting himself on the back at the great job he has done.

      Sentiment: Strong Sell

    • Wake up. Kain has stated numerous times that he wants to pay out a consistent dividend.

      No special dividend for you.

    • Not going to happen. MREIT's do not pay qualified dividends so where's the pay-off? Kain has said he likes steady and consistent dividends, and that's what he will do.

      • 1 Reply to ray858945
      • OK, thanks for the curt reminder regarding the "qualified" distinction. Your point regarding AGNC specifically is duly noted. Now, if we can, let's try again to broaden our opportunity universe beyond just AGNC. What about the prospects for other high-div/dist payers whose payouts are "qualified",and who may present opportunities for profitable plays between now and the end of the year. Thoughts?
        Thanks again,

    • Indeed, possible


      Sentiment: Buy

    • Indeed, possible


      Sentiment: Buy

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