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These folks like it too
https://stockinvest.us/stock/ORC
Those $2.80's were juicy. I scooped up a bunch of them.
"Mortgage REIT Carnage"
"News on Q2 2022? Orchid Island Capital (ORC) announced a large chunk of book value was lost. It dropped from $3.34 to $2.87. That’s down about 14% in a quarter. Impressed? Me neither. Of course, if you were holding onto shares of ORC, you must’ve ignored all the times we told investors to simply get out." [much more...]
https://seekingalpha.com/article/4523481-mortgage-reit-carnage
Bobroo also gives it a Hold rating.
As in, hold shares!
ORC has a set pattern like most monthlies, learn it and play it, you can bank multiples of their dividend
you can discuss the other over here
https://investorshub.advfn.com/Daves-Dividends-Payers-22057
Ive always liked DNP,
ORC is tough to gauge but it pays out.
JMP Securities analyst Mikhail Goberman reiterated a Hold rating on Orchid Island Capital (ORC – Research Report) today. The company's shares closed last Thursday at $2.93. Orchid Island Capital has an analyst consensus of Hold
Nice dip ORC, any more or should I load up on this one
Excellent point - only use what you can afford to possibly lose.
I was Taught and Learned quickly early on......
NEVER EVER EVER Take a RISK (Even if close to Zero) with the EQUITY of your home in Any investment. Use any other money but Never take a risk with your equity. That is your home.
My 2 cents if you care to.hear it.
Good luck
I am strong believer in ORC but would never do that or any other stock.
In addition to doing the math to figure how much you'd profit, you need to do the math to figure where the break even is. And, here is the important part; know at the very beginning you might need to bail out if it gets to the break even level-- and accept all the consequences.
I am very bullish on ORC. I am a believer. Even still, I would divide up that 100K amongst several dividend payers; ORC just being an outlier that pays the most.
Gotta know the authorized before claiming anything of a split, lololol too funny
Except for the fact that 5 years ago this was a 10 dollar stock.
They have decreased the divvy twice in the last year.
They have to dilute to pay the divvy.
There will be more divvy reductions and a split coming in ORC.
There are other stocks that are monthly divvy payers that are far more stable than ORC.
Great idea, wrong stock......
$100K buying in at $3.08 would yield 32467 shares times .045 would yield
1461.01 per month
17532.18 per year
Assuming the dividend stays the same the $100K would be paid off in 5.7 years.
How safe do you feel the dividend is on a $3 stock?
Sounds very possible to me...think a friend of mine is doing something similar to this.
Drunk Thinking out loud. If I have $100k in equity in my home, can I take out a loan and use it to buy shares here. Use the dividend to make the monthly payments. Once paid off I can keep collecting the dividend or cash out Whatever it is worth.
Orchid Island Capital GAAP EPS of -$0.84 misses by $0.51, revenue of $39.2M beats by $3.31M
"ORC scheduled to announce Q1 earnings on April 28th, after market close."
I can't imagine it will be good.
https://seekingalpha.com/news/3828234-orchid-island-capital-q1-2022-earnings-preview
So what if their total debt is higher than their book value???
I am confident our dividends will continue consistently for many, many years to come.
This shows much of the problem: (in a word, "Leverage")
https://www.discoverci.com/companies/ORC/leverage-ratio
Those mortgage backed securities have likely dropped even more since March 31. .
"ORC's estimated book value per share as of Mar. 31 was $3.34."
Orchid Island Capital (NYSE:ORC) on Wednesday said it expects to report Q1
EPS of -$0.84, which includes $1.04/share of net realized and unrealized losses on RMBS and derivative instruments.
ORC's estimated book value per share as of Mar. 31 was $3.34.
The firm's estimated total return on equity for Q1 was -19.5%.
"Why Mortgage REITs Are Getting Pounded"
"Summary
* MBS values were slaughtered.
* Rates moved too quickly. The mREITs hedge, but hedging isn't perfect.
* Even with hedges in place, leveraged losses are bad.
* The yield curve inverted. That's not good, but the shape of the yield curve matters less than most investors think."
Click link below to read full SA article:
https://seekingalpha.com/article/4500193-why-mortgage-reits-are-getting-pounded
Chasing Yield never works, poof goes your Principle, complete trash
ORC's not a REIT; it's a mREIT or Mortgage REIT. It had 6 billion in mostly short term debt last I looked, and borrowing costs are soaring.
I don't own ORC or anything like it. I only own the bluest blue chips with well covered payouts.
I'd worry too that payouts of investments that compete with mREITs, like federally insured bank CDs, are rising.
Well if hindsight is 20/20 this REIT stock is predictable, continues to decline. So what is the upside of this stock of any?
I don’t have a lot in so might as well take the loss and move on finally.
Thanks for replies.
ORC's big problem in an nutshell: ORC has tons of debt and interest rates are soaring. Hope no one is relying on this for retirement funding.
A $3 price is a red flag for anyone with investing experience and wealth. Tells you the kind of investor ORC's targeting.
Notice how quality stocks are getting more and more expensive in recent years... with many trading over $1,000 before splitting down to about $70-$150.
No quality company wants to have a $3 stock price.
Gotta know the A/S before any RS, know it?
If you've been in this Bowser since '17, you need to figure how much you could have profited in other stocks... such as a dum-dum S&P 500 index fund, like what I have tons of money in. Note the S&P also pays dividends. And usually they grow with time.
Counting divs, SPY has far more than doubled since 2017.
EdwardJones Report:"We don't recommend mortgage REITs for individual investors."
What can go wrong?
"• Mortgage REITs borrow more to fund their operations than
equity REITs - Mortgage REITs borrow up to 85% of the fair
market value of assets, while equity REIT levels are usually in
the 25%-50% range.
• Mortgage REITs can be vulnerable to rising interest rates
- Mortgage REIT profits and dividends are typically reduced as
interest rates rise.
• Mortgage REIT dividends have been unpredictable over the
past five years – The five-largest residential mortgage REITs
(by market capitalization) have raised their common dividends
6 times over the last five years, but have also cut their common
dividends on 15 other occasions.
• Most mortgage REITs have consistently issued significant
amounts of new common shares to fund their business
activities - New common stock issuance typically results in
ownership dilution for stockholders."
Read the full report:
https://www.edwardjones.com/images/mortgage-reits-high-yield-but-high-risk.pdf
Someone much smarter than me explain to me why the people in charge are still in charge of this company. You can blame Biden, covid, rate hikes, etc all you want but as “bar1080” points out its been bleeding for a while. If you invested when Mr Cauley came on in 2010 you would be down around 8% with reinvesting dividend’s, and if you didn’t you’d be sitting on an 80% loss.
I got in 2017 and was just too stupid to get out and instead averaged down, now sitting at $7.27 it might be finally time to move on and take the loss because I see the $2s coming and a reverse split will kill it because it’ll be back down to sub $5 surely again.
So I ask again how is management still managing this thing. Sort of rhetorical but if someone has an answer please share.
Thats why it makes more sense to trade it than hold it. Then again no one knows what their authorized is, ORC can dilute to pay the divy.
Long on this is beyond foolish...better off driving down a freeway and throwing thousands out the car windows or donate to homeless. Wait until rates continue to be raised LOL- ORC will keep slashing and PPS will continue falling like an anchor off a russkie impounded yacht into the Atlantic sea floor. The PPS and dividend is a honey pot trap. It’s not what it looks like - a great deal on surface. Hopefully new potential investors are savvy enough to understand that ORC, will continue IMO to crumble, therefore anyone long- will lose their butts.
The honeymoon with extremely high divs in REIT’s and others - is over. Curtain call has already started and nothing anyone can do about it. Trade wisely everyone, especially on long acquisitions.
Correct - but the dividend will continue to be slashed over and over - and PPS will continue to deteriorate. There isn’t a way of out this. Why buy a likely decreasing div which becomes less attractive with principal investment losses? Biden has years left / orchid capital imo has no choice but to continue reducing div as rates continue to rise. Why else would they reduce dividends to shareholders - why bc their bleeding cash? Burn rate isn’t looking good here and by reducing dividends they are bailing on shareholders and from attracting potential new ones.
This has short me all over it - but trading in out also- but you’d be out of hour mind to hold this long with rates likely to continue go up for years with biden still in office another 2/3 years. The dividend could be reduced to a penny by time their done or completely to zero.
A bunch of REITs are slicing, no big deal, the insanity being perpetuated by this administration wont last forever. The market likes direction not indecision.
Saw the decrease coming - interest rates are rising and will continue and as they do this div will likely continue decreasing.
Chasing Yield never pays, complete junk, decreasing book value and principal losses
"Orchid Island Capital cuts dividend by 18% to $0.045"
"Orchid Island Capital (NYSE:ORC) declares $0.045/share monthly dividend, -18.2% decrease from prior dividend of $0.055."
https://seekingalpha.com/news/3814365-orchid-island-capital-cuts-dividend-by-18-to-0045
Got some $3.15's last week how'd you do?
That ludicrously high yield is a reason to_AVOID stocks like ORC, especially in tough times.
Massive Princple losses, hey but it pays a dividend, chasing Yield never works
I’m playing the trade in out.
Massive principle lost, divi cuts, but hey there's a dividend!
Great div no doubt. But PPS declines, doesn’t make this a full time long term hold. In/out - stay get divs- buy/sell rest of month add shares, rinse head & shoulders out, repeat.
Orchid Island Capital (NYSE:ORC) declares $0.055/share monthly dividend, in line with previous.
Forward yield 17.05%
Payable March 29; for shareholders of record Feb. 28; ex-div Feb. 25.
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