Alesco's IndyMac investment won't affect dividend
Thursday May 15, 12:14 pm ET
Alesco says loss of interest payments on IndyMac investment should not affect dividend
PHILADELPHIA (AP) -- Alesco Financial Inc., a real estate investment trust, said Thursday its investments in IndyMac Bancorp Inc. securities should not affect its ability to pay dividends through the rest of the year.
Alesco currently pays a dividend totaling $1 annually.
Early this week, mortgage lender IndyMac said it would defer interest payments on its trust preferred securities -- securities which Alesco owns. Based on its holdings of IndyMac securities, Alesco would typically receive about $1.5 million, or 2 cents per share, per quarter.
Alesco did add the board will review dividend payments and would not guarantee the payments would remain stable.
Shares of Alesco rose 31 cents, or 13 percent, to $2.66 in morning trading.
