If I am reading correctly, that EFC is only paying out a 40 cents dividend, in the upcoming First Quarter, that can't be "good" for the company's stock price, in the short term. Am I missing something here? This company uses leverage to maximize return/profits and investors are to be compensated for that risk, with high quarterly dividend payouts (typically averaging over $1.32/share/per quarter), and getting 40 cents a dividend, this quarter, should not make present holders of the stock, too happy. I know that I would not be a happy camper if I were an investor.
I have been looking at this stock, as a potential investment, over the last two weeks, but I am glad that I never pulled the plug and bought the stock, at this point. I will follow the stock, and see what transpires.
I listened to the Q1 EFC LLC Earnings Conference Call today and when I heard the Vice President or whoever the hell it was say we are extremely pround of our first Qtr Div. of $.40, it about made me throw up. But, from what I understand, is that they are going to payout their Div. incrementaly throughout the year, for a total of 100% of their profits to be paid in their Div. So the 2ndQtr Div might be $.50, Q3 $.75, and Q4 $1.31 again. But this is purely speculation.