Well it important to note that the vast majority of SAN's banking is outside of Spain. They fared much better than other banks during the recession as it is conservatively operated. But because they are domiciled in Spain, they have been the proverbial baby that got thrown out with the bath water. They are one of the largest banks worldwide. It was also gobbling up other distressed bank assets throughout the recession while still paying the dividend. You can also opt to take your dividend in more shares, which gets you around Spanish and us income taxes.
Banco Santander (SAN) pays an 11% dividend which has been a pretty solid payout throughout the European crisis/recession the last few years. Its a Spanish bank but has a lot of exposure in Latin America and other European countries as well.
That's correct, Chris is in error on that in his response to my earlier comment in that DSX does not pay a dividend put the price action has been great since I bought. But the NMM I bought is paying nearly a 12% dividend but its price is not moving up as much. Just depends on what you want. Wished I bought FRO yesterday...
I've been loading up on DSX. Also NMM for the fat and relatively safe dividend. I follow Wilbur Ross who is the ultimate bottom feeder and he's been buying up shipping Stocks
By Michael Aneiro
Mortgage REITs can’t seem to put together an uneventful day lately, and they’re getting hit across the board Monday. Shares in mortgage REIT American Capital Agency Corp. (AGNC) are down 4.7% to $28.63, while Annaly Capital Management (NLY) is down 2.6% to $14.66. MFA Financial (MFA) is down 0.9% to $9.10, and Two Harbors Investment (TWO) is down 1.6% to $11.91 and the iShares FTSE NAREIT Mortgage PLUS Capped Index Fund (REM) is down 2.2% to $14.91.
The weakness comes after the Wall Street Journal‘s resident Fed-watcher Jon Hilsenrath published a story over the weekend (which had been rumored to be in the works since late last week) outlining the Federal Reserve’s efforts to map an exit strategy from quantitative easing. An excerpt:
Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated.
The Fed’s strategy for how and when to wind down the program is of intense interest in financial markets. While the strategy being debated leaves the Fed plenty of flexibility, it might not be the clear and steady path markets expect based on past experience.
Recently regulators had flagged mortgage REITs as a possible bubble growing amid such friendly Fed policy, and any end to that policy could prompt a pullback in the sector.
Oil closed down roughly 1.7 % today. This is partly due to lots of monetary accommodation happing around the world, especially Japan, causing the dollar to strenghten. And not to mention the economic data out in the last couple days has not been good. And it would appear from reading some of the comments on this board- and this is amazing to me- there are a lot of people who were unaware SDRL isn't giving a dividend until June. And then there are generally a lot of people on edge about the market rally getting a little long in the tooth and there is the "sell in May and go away" thing coming up. This is my take on why SDRL has been going down, but so are a lot of the oil related stocks.
I think you get the best stock price when things seem at their worst...If you wait for things to improve, it will already be reflected in a higher price. I remember buying BP when after the oil spill. Bought on the exact day their CEO was getting grilled before congress and then made a ton of money over the next several months when I sold. Obviously SBY is nothing like that, but you see my point.
I 've also picked up shares of PGH in the very low 4's It looks like it has finally bottemed out and is paying about a 11% div. It's a canadian energy trust so you have to pay their tax, but you can write their off your US federal taxs.
I own several of the mReits, all paying between 12 and 17% yield. My favorite at the moment is TWO, which is anticipated to spin off its shares of SBY to shareholders soon in addition to the fat dividend they have.
I personally don't see it tanking. Seems like there is good support around 36. I sold SDRl after qualifying for the 2 dividends in December and bought MMLP and collected their dividend and a few dollars a share in price appreciation (during which time SDL traded roughly sideways) and then sold out of that. Have been buying SDRL again each time its dipped in thelow/mid 36's lately. No div until June, so I'm just looking at it like a growth stock until then. On a related note, I've been reading lately that the nuke issue in Iran is getting pretty grim (see the latest issue of Time) and if we or Israel are forced to take military action between now and early 2014 to stop them, both oil and gold are going to go much much higher.
Obviously I'm not liking the price action at the moment. But I am not going to sell any of my shares thinking that future reports from the company will be much better as their occupancy rates go up and housing prices and demand in general improve. So right now I'm a long term hold including any shares I get from TWO.