When MSFT was new it was great value, but when it get to over 30 years old it is less attractive. Also when AGNC came out a few years ago, people have similar douubts like you.
Even if the dividend is 0.85, I still believe WMC is the best value in mreits. 85 cents means 16.6% yiels even at an adverse enviroment. It is coverable by earnings. It has a chance to be raised back to higher again. I am still holding.
Some lemmings will try to follow the sentiment while ignoring the fundamental: if a stock goes from 3% to 4% hike, they get excited and rushed to follow the street to buy. But if the dividend goes fom 18% to 16%, they would panic and sell...
Although I believe 95 cents is a probable outcome, i would still hold if it turned out to be 85 cents. It is way better than AGNC, MTGE which are offering dividend that are beyond the coverage of their earnings
I saw a post on CVI message board stating that the midland pipeline will be in place soon. So CVRR is in better shape having cheap crude.
My question: 1. when is the Midland pipeline estimated to be in place? 2. After the pipeline be in place, will ALDW be still profitable? Can it have distribution around 8% or above?
TIA for sharing perspectives
Many people trying to be follow the market sentiment while ignoring the fundamental of the company: WMC's earning is still the best comparing with its peers. its dividend still the highest and covered by earnings.