New Senior Investment Group Inc. (SNR)

[ou71764]

They aren't covering the dividend. I think that ideally the payout ratio of the dividend per the funds available for distribution (FAD) should not be over 80%. Thus I think the dividend could be reduced to .72, or .18 per quarter. That would be under the 80% threshold of FAD.

If I am correct on the dividend going forward, then the current yield would be 9% with the share price at 8.00. I was hoping to see the stock price at 7.20, in order to lock in a potential 10% yield.

But right now, anything around 8.00 seems very appealing, especially given that the dividend hasn't been cut yet!! The current dividend of .26 per will be paid one month from now. And since it hasn't gone ex-dividend yet, that dividend is still available for anyone who buys now.