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Wish I knew the future of this Co. A hell of a time to buy a glob of shares.
Payday was yesterday, 14% or so here and 19% over at ARR I'm happy for now.
Did everybody leave ??
I wonder how low can this go ?
Havent bought any more yet. All these MREITS are hurting right now.
My thoughts exactly!
I think people are gettin on board for the income payment coming in early April.
Is this something other than the divi ? Must be thats at the end of the month. Any details ?
double post deleted
I wont be buying any more CIM, but I wont be selling any either. Not yet anyway. New money will be going to ARR
Beginning of the End for Mortgage REITs?By Dan Caplinger | More Articles
March 24, 2011 | Comments (14)
If you like stocks with the biggest dividend yields in the market, then you have to love real estate investment trusts that invest in mortgage securities. For years now, many mortgage real estate investment trusts have paid double-digit dividend yields while seeing some impressive price gains as well.
But for a while, skeptics have believed that eventually, good times for mortgage REITs would come to an end. Now, news from four of the most popular mortgage REITs has some wondering whether that end will come sooner than later.
The dreaded dividend cut
One fear that some, including my Foolish colleague Anand Chokkavelu, have expressed is that at some point, the extremely favorable conditions that have supported mortgage REIT profits will change. To understand the impact of such a trend change, let me take a break to give you some background on how these investments work.
Mortgage REITs make money by borrowing money, typically at rates based on prevailing short-term interest rates, and using it to buy mortgage-backed securities, whose income payments are generally based on longer-term interest rates. When the spread between short-term and long-term rates is wide, as it has been for some time, mortgage REITs are extremely profitable. When rate spreads tighten, however, profits get hurt. And since REITs pay the bulk of their income in dividends, lower profits mean smaller dividend payments.
That's apparently what happened to Annaly Capital (NYSE: NLY ) and Chimera Investment (NYSE: CIM ) this quarter. On Monday, Annaly announced that it was dropping its dividend to $0.62 per share, a reduction of 3% from the previous quarter and down from its high of $0.75 at the end of 2009. Similarly, Chimera also cut its dividend for the second quarter in a row, with a much bigger cut of 18% to $0.14 per share. Chimera shares dropped 4% on the news, while Annaly lost a more modest 1%.
Yet the conditions you'd expect to see in a falling-dividend environment for mortgage REITs don't seem to be present. Short-term rates haven't budged, and long-term rates spent much of the first quarter at higher levels before falling back near their end-of-2010 levels. Moreover, Cypress Sharpridge (NYSE: CYS ) announced earlier this month that it would hold its dividend steady for the first quarter. Because dividends are a leading indicator of quarterly income in this industry, we should know more when Annaly and Chimera make their next earnings report.
Gimme more shares
Meanwhile, some other mortgage REITs are cashing in on investor interest before it has a chance to evaporate. This week, both American Capital Agency (Nasdaq: AGNC ) and Invesco Mortgage Capital (NYSE: IVR ) announced massive secondary offerings, which sent their shares sharply downward. American Capital Agency offered 28 million new shares at a price of just under $28 per share to bring proceeds of $780 million, effectively increasing the size of the REIT by about 30%. Invesco's offering of 19 million shares pushed its share count up by nearly 40% and should raise around $400 million given current share prices. Again, shares of both companies fell 3% to 4% in response to the news.
Secondary offerings aren't new to the mortgage REIT industry, and they aren't automatically bad for investors. Both Hatteras Financial (NYSE: HTS ) and Two Harbors (NYSE: TWO ) have announced similar secondary offering during March. But typically, new shares are priced at a slight discount to the prevailing market price, which often causes the share price to drop.
The bigger concern, however, is an overheating market. Most of these companies plan to use their new capital to buy more mortgage securities. At some point, though, as the REITs compete against each other for the best securities, some of them will have to settle for lower-quality investments -- and eventually, that could come back to haunt them.
Don't turn that dial
As long as the Federal Reserve doesn't start hiking rates, mortgage REIT investors probably have some time before any major problems appear. But to make sure you don't miss any important news, you should start keeping a close watch on the mortgage REITs you're most interested in. That way, when you decide the long-anticipated end of the mortgage REIT bull market has finally come, you'll be able to get out quickly and keep your profits
Looks like some type of reenvestment plan.
ARMOUR Residential REIT, Inc.
Dividend Reinvestment
and Stock Purchase Plan
The Dividend Reinvestment and Stock Purchase Plan, or the Plan, is designed to provide current holders of our common stock, par value $0.01 per share, and other interested investors with a convenient and economical method to invest funds and reinvest dividends in shares of our common stock.
By participating in the Plan, you may purchase additional shares of our common stock by reinvesting some or all of the cash dividends that you receive on your shares of our common stock. If you elect to participate in the Plan, you may also make optional cash purchases of shares of our common stock of between $50 and $10,000 per month and, with our prior approval, in excess of $10,000 per month. Shares of our common stock purchased under the Plan in excess of $10,000 per month may be acquired at discounts from the prevailing market price as determined by us from time to time. The Plan highlights include:
·
Any holder of shares of our common stock may elect to participate in the Plan.
·
Interested new investors who are not currently holders of our common stock may make their initial purchase through the Plan.
·
Up to a 3% discount on optional cash purchases of shares in excess of $10,000 per month purchased under the Plan.
·
Full or partial dividend reinvestment options.
·
Optional cash purchases of between $50 and $10,000 per month and, with our prior approval, optional cash purchases in excess of $10,000 per month.
·
Shares purchased will be maintained in your name in book-entry form at no charge to you.
·
Detailed recordkeeping and reporting will be provided at no charge to you.
·
Optional automatic investment withdrawals from your bank account.
This prospectus relates to the offer and sale of up to 4,000,000 of our common stock under the Plan. Participants should retain this prospectus for future reference.
Our common stock and warrants are listed on the NYSE Amex under the symbols “ARR” and “ARR.WS,” respectively.
We have elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2009. To assist us in qualifying as a REIT, among other purposes, stockholders are generally restricted under our charter from beneficially owning more than 9.8% by value or number of shares, whichever is more restrictive, of our outstanding shares of common stock. In addition, our charter contains various other restrictions on the ownership and transfer of our common stock.
Our principal office is located at 3001 Ocean Drive, Suite 201, Vero Beach, Florida 32963. Our telephone number is (772) 617-4340.
Investing in our securities involves risks. You should carefully consider the information referred to under the heading “ Risk Factors” beginning on page 8 of this prospectus before you invest.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined that this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is March , 2011
--------------------------------------------------------------------------------
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7817460-809-204688&type=sect&TabIndex=2&companyid=809239&ppu=%252fdefault.aspx%253fcompanyid%253d809239
Where is the news? Why not post it here ?
As long as they can keep a double didgit divi and the PPS near or above 4.20 I will stay put.
How can you say that when they cut the dividend ?
No, no bashing here. I recently bought more CIM, paid a little too much but thats ok for now. Dumped all my CFP and put it into ARR, another REIT with incredible payouts. CIM is still my biggest holding in REITs
Yep I told you so. Proof was in yesterdays drop.
What is Jaywalk ? BTW this ARR looks good.
Thats the only reason Im here.
JERICHO, NY -- (Marketwire) -- 03/21/11 -- Cornerstone Progressive Return Fund (NYSE Amex: CFP) (the "Fund") announced today that it has fixed the close of business on April 1, 2011 as the record date for determination of shareholders entitled to participate in the Fund's 1-for-3 rights offering. Each shareholder will receive one non-transferable right for each share held as of the record date. For every three rights a common shareholder receives, they will be entitled (but not required) to purchase one new share of the Fund at a subscription price equal to the greater of (i) 102% of net asset value per share as calculated at the close of trading on the expiration date of the offering or (ii) 90% of the market price per share at such time. Fractional shares will not be issued. In addition to the shares offered in the primary subscription, the Fund will offer a 100% over-allotment to oversubscribing shareholders. Shareholders who fully subscribe in the primary offering will have the option to oversubscribe for additional shares which may be available.
The offering is subject to the filing of an amended registration statement covering the rights and shares to be issued and to other customary regulatory filings and approvals. Any rights offering conducted by the Fund will be made only by means of a prospectus.
Cornerstone Progressive Return Fund is a diversified, closed-end management company organized as a Delaware statutory trust and is registered with the SEC under the Investment Company Act of 1940, as amended.
Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price that is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund's investment objective, risks, charges and expenses. Please read the Fund's disclosure documents before investing.
In addition to historical information, this release contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund's investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund's disclosure documents, filed with the SEC, and actual trends, developments and regulations, in the future and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.
Contact:
Cornerstone Progressive Return Fund
(513) 326-3597
Dividend !!
Chimera Investment Corporation Announces 1st Quarter Dividend of $0.14 per Share
Company Release - 03/21/2011 16:05
NEW YORK--(BUSINESS WIRE)-- The Board of Directors of Chimera Investment Corporation (NYSE: CIM) declared the first quarter 2011 common stock cash dividend of $0.14 per common share. This dividend is payable April 28, 2011 to common shareholders of record on March 31, 2011. The ex-dividend date is March 29, 2011.
The Company distributes dividends based on its current estimate of taxable earnings per common share, not GAAP earnings. Taxable and GAAP earnings will typically differ due to items such as differences in premium amortization, accretion of discounts, unrealized and realized gains and losses, credit loss recognition, and non-deductible general and administrative expenses.
Chimera Investment Corporation invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. The Company’s principal business objective is to generate income from the spread between the yield on its investment portfolio and its cost of borrowing and hedging activities. The Company, a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”), currently has 1,027,082,793 shares of common stock outstanding.
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” “would,” “will” or similar expressions, or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, our business and investment strategy; our projected financial and operating results; our ability to maintain existing financing arrangements, obtain future financing arrangements and the terms of such arrangements; general volatility of the securities markets in which we invest; the implementation, timing and impact of, and changes to, various government programs, including the Term Asset-Backed Securities Loan Facility and the Public-Private Investment Program; our expected investments; changes in the value of our investments; interest rate mismatches between our investments and our borrowings used to fund such purchases; changes in interest rates and mortgage prepayment rates; effects of interest rate caps on our adjustable-rate investments; rates of default or decreased recovery rates on our investments; prepayments of the mortgage and other loans underlying our mortgage-backed or other asset-backed securities; the degree to which our hedging strategies may or may not protect us from interest rate volatility; impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; availability of investment opportunities in real estate-related and other securities; availability of qualified personnel; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; market trends in our industry, interest rates, the debt securities markets or the general economy; and our ability to maintain our qualification as a REIT for federal income tax purposes. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all obligations, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Source: Chimera Investment Corporation
Should have had the next dividend declared by now.
Looks like a huge spike today, what gives ?
Here we go another .16 today.
CWF ? Is that the symbol ? Cant find it.
With CFP you wont have to worry about any support it is steady uphill day after day.
I see the location in Sacramento is no longer listed ?? Not good.
I had big hopes for this company once, too bad it turned out to be another POS
up another .13 today
Big hit today. :(
Could not believe there was no board for this one with the massive dividend it has been paying every month. Plus the pps has been smoking up the charts this week.
I bought more CIM today, since CFP is getting expensive.
Yesterday was Sunday. We need another divi declaration.
Yes I understand that.
Thanks Ill read them.
I beleive its the THC in the wed that is benificial so why buy it from a drug store if you can grow it and smoke it at home? Maybe it not that simple but it seems they will dilute it down with their 'recipie'
Why buy this ??
This is a company I can connect with. Weed... But seriuosly what can this compny offer that a person cannot have on thier own ? Anyone can grow or buy weed and smoke it, so why would they deal with a pharmacuticl company when its already every where ??
Im not trying to put anyone down here, just looking for opinions from anyone who may know. I know very little of whats going on here so thats why I'm asking.
CIM and CFP MY CURRENT FAVORITES
http://stockcharts.com/h-sc/ui?s=cfp
http://stockcharts.com/h-sc/ui?s=cfp
both pays very well.
OK ! For me it started in Oct 2010. For me its been dropping, waiting for the next anouncment. So far so good, just had some bad info on the next div which I now know has not yet been declared.
Well I got .18, then I got .17, then I read that the next one was to be .167, That part appears to be wrong.
The dividend keeps dropping. Not good.
what are the new shares for ?
some kind of spin off ?