dropped their interest rate raise threshold of 6.5% unemployment rate for a broader economic outlook. This week's 6.3% might have really spooked the markets otherwise.
When a REIT drops it's dividend it is a sure sign (to me) that there is potential trouble ahead. I exited AGNC when it dropped from $1.40 to $1.25 and got out of NLY at the same time expecting it to follow suit, which it did. Also got out of ARR when it dropped from .11 to .10 (it's now .05). It's the one thing that triggers this long term investor to sell a position more than anything. Of course other material changes could do the same thing.
2008 is long gone and the real estate market has been in recovery for some years now, albeit slowly. Regulations are now in place that would make 2008's scenario much more difficult to repeat. 2008 affected just about every area of the economy. You might also want to take a look at Orchid Island Capital (ORC). Just had a nice report and pays .18 monthly. Earned .71 for 1stQ and paid out .54 so nice divvy coverage.
keebon, I'm just the opposite opinion on BDCs. with the economy seeming to be purring along BDCs should do just fine. The recent minor downswing I feel is solely due to the indices affair and that should pass. The S&P elimination was a lot more shares than the Russell will be so the impact may not be as great. My BDCs are actually doing fine, ARCC and PSEC have been holding their own and i own them for income so not too concerned with short term fluctuations. I agree that the SEC will go ahead with their requirement to take them out of the indices.
I think investors and those that got NEWM in the spin off were disappointed in today's earnings release. The company initially stated they would be paying out significantly more in dividends that they stated today (30-40% of free cash flow) for the next quarter.. NEWM is selling off and late today NCT and NRZ are showing nice gains. I think many NEWM holders are selling out today and reinvesting in the other two. Just my thoughts.
jk, I agree 110%, but I don't think we're in for that cataclysmic sell off that I actually thought about a few weeks ago. Sold about 15% of my positions it concerned me so, but have since scaled back into SDRL and will reenter a couple of more, probably next week.
Mark: Question: NYMTP. Got any ideas as to why it trades at a discount to par vs. other comparable preferreds which are mostly at a premium to par?
free cash flow 14.3 million = .14 per share. Will initiate dividend with Q2 earnings report. Expect 40-50% of free cash flow to be paid as dividend. Probably in the 9-12 cents per quarter range, about 3-4% yield to start at current share price and earnings. Probably go higher but who knows?
free cash flow 14.3 million = .14 per share. Will initiate dividend with Q2 earnings report. Expect 40-50% of free cash flow to be paid as dividend. Probably in the 9-12 cents per quarter range, about 3-4% yield to start at current share price and earnings. Probably go higher.
Stagg: I think if you check the BDI history it was over 1600 in January and February and then started it's decline in march to today's 943. The early year rise in the BDI coincides with many of the shippers rises in share price, just as the most recent BDI swoon shows the decline. Including today's 5% rise I get the stock up 24.8%ytd which coincides with my post earlier that it was up 20%. Hey, not too shabby, but again, the volatility in the sector isn't my cup of tea anymore.
OSLO, April 24 (Reuters) - Shipping tycoon John Fredriksen is joining one of its shipping firms with rival Knighsbridge Tankers Ltd to create the largest U.S. listed Capesize firm, which will compete with Fredriksen's own dry bulk company Golden Ocean.
Fredriksen's Frontline 2012 and Knightsbridge Tankers will together own a fleet of 39 modern vessels, the firms said on Thursday.
"(This) is in line with our strategic plan of creating pure plays in different shipping segments through consolidation, divestments and spin offs," Fredriksen said in a statement.
Always wary. 1 month shows a 20% drop in share price which coincides with the Baltic Dry Index dropping to under 1,000. Maybe they'll pick up some cheap DB ships from GNK but why would JF want to compete with his own Golden Ocean. Perhaps looking for a much larger piece of the pie but shipping still remains, to me, too volatile a sector to invest in. I learned my lesson back in 08-09.
Why? If you buy a $25 preferred issue and it gets called you'll owe no tax on the call. It gets called on your purchase price and you'll only owe tax if the preferred has gained in price if you got lucky and picked up the preferreds at a discount. You'll pay taxes every year on the dividends unless it's in an IRA. Most preferreds get called at their issue price. If you picked up some F preferred back in 08-09 you probably got the shares at a significant discount so you would most likely owe on the capital gains. I have some preferreds I picked up in '08 at a 50% discount but they're in an IRA so no sweat on taxes. Hey, if you made great money on a discounted preferred, you gotta pay the piper. Same as any other stock. Check out quantumonline and you can put in what your are looking for and they'll come up with just about anything out there. I think NYMTP is a great deal for an IRA with currently an 8.5% yield.
most people don't buy preferreds for potential overall returns. They're very happy to collect the set dividend and cash out if the preferred is called. . At $21 you're getting a great preferred return. Something to put in an IRA for safety and income.
.09 after the secondary and on a sick market day. Gotta love it. That and the fact that this time I got the Borgata's money and not visa-versa lends hope to a nice Monday bounce :~]