Long is completely different then a trade, which I thought you were asking about.
As for a long hold for the dividend 18% isn't a bad place to start. That huge price fall defiantly gave one a strong basis buying op. I see MAY 8th they closed their 6 mil stock offering which caused the gap down, but have no idea what caused the following decline, without much more research.
Monthly payouts are nice.
There are only 2 small negatives to a divvy play with them I see. 1. they only started as a REIT Nov 2012 and have less then 1 year history. 2. as mortgage interest rates go up, their margins should go down, which may effect dividend payout negatively down the road. Both manageable as you can pull out any where if this happens. I've held REITs for years and have just switched because of lowering ROI in one, for one increasing.
Wouldn't touch it for a trade, but dividend play. Looks like a winner @ 18%. I only get 15% with my $6.66 basis at NYMT.
You know I should mention 1 thing about REITs, analysis's love to cry wolf about them every time there is concern about the individual REIT lowering their rate. Ignore this bull. The dividend elite think long term and history but us traders think each Q. We're not Warren Buffets which buy on 10 or 20 years plans. We jump quarters if needed to get the best ROI available. So don't read all the bull about individual dividend REITs that are out there, from the doom and gloom talking heads. They think long we think short term for dividend plays, quarters not years.
When I first started playing dividend plays, I use to get all worried about negative stories for my REIT. Till I realized this.
