EARN

Are You Still Trying to Catch Lightning with American Capital Agency?

by

Investors familiar with the mortgage REIT space that have spent any time on our website know of our groundbreaking call on the industry. Please have a look here. American Capital Agency (AGNC), one of the most prominent operators in the mortgage REIT space, reported yet another disappointing quarter. It continues to be painful to write how much we don’t like the uncertainties regarding the broader mortgage REIT environment. Some of the more bullish research shops appear to finally be throwing in the towel. Though the yields on some of the mortgage REIT equities appear attractive, the risks of further dividend cuts continue to grow. Shares of American Capital currently yield ~13%, for example. In the third quarter, American Capital Agency … Read more

Dividend Increases/Decreases for the Week Ending September 18

by

Below we provide a list of firms that raised their dividends during the week ending September 18. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Artesian Resources (ARTNA): now $0.2216 per share quarterly dividend, was $0.2183. Blackstone Mortgage Trust (BXMT): now $0.62 per share quarterly dividend, was $0.52. Citizens Financial Services (CZFS): now $0.41 per share quarterly dividend, was $0.405. Elmer Bancorp, Inc. (ELMA): now $0.33 per share semi-annual dividend, was $0.32. The First of Long Island (FLIC): now $0.20 per share quarterly dividend, was $0.19. Golden Enterprise (GLDC): now $0.03375 … Read more

Dividend Increases/Decreases for the Week Ending March 14

by

Below we provide a list of firms that raised/lowered their dividends during the week ending March 14. Firms Raising Their Dividends This Week Capstead (CMO): now $0.34 per share quarterly dividend, was $0.31. Colgate-Palmolive (CL): now $0.36 per share quarterly dividend, was $0.34. Douglas Dynamics (PLOW): now $0.2175 per share quarterly dividend, was $0.2125. Ellington Residential Mortgage REIT (EARN): now $0.55 per share quarterly dividend, was $0.50. Equity Lifestyle Properties (ELS): now $0.325 per share quarterly dividend, was $0.25. General Mills (GIS): now $0.41 per share quarterly dividend, was $0.38. Gramercy (GPT): reinstates common stock dividend of $0.035 per share quarterly dividend. Hurco Companies (HURC): now $0.07 per share quarterly dividend, was $0.05. JMP Group (JMP): now $0.045 per share … Read more

American Capital Agency Loses $2.37 Per Share in Second Quarter

by

As we have encouraged readers since the peak in September 2012, the mortgage real estate investment trust (REIT) industry has myriad risks, and the marketing pitches indicating that their principal and interest payments are guaranteed by a US government sponsored entity (GSE) should not make investors feel safe. This dynamic has little bearing on the underlying trajectory of fundamentals and a mortgage REIT’s book value, the key valuation driver and the major impetus behind share price movements in the space. During the second quarter (results released Monday), American Capital Agency (AGNC) failed at its principal objective to preserve net asset value, as book value plunged to $25.51 per share from $28.93 per share in the previous sequential quarter (a $3.42 move). … Read more

The Mortgage REIT Business Doesn’t Work…

by

Key Takeaways: ·         The good times are over for mortgage REITs. o       Mortgage market dynamics are inherently difficult to predict. o       A flatter yield curve has negatively impacted net interest rate spread income across the entire mortgage REIT universe. We’re already seeing deteriorating gross ROE’s from some of the largest industry constituents. o       The Fed has only caused a marginal tightening in mortgage spreads, and in our view, a marginal widening due to reduced Fed activity (if/when it happens) is perhaps the best-case scenario as it relates to spread income for the group. A continuation of spread tightening is likely the base-case scenario, which is negative for the group. o       Net interest rate spread income and gross ROE’s will only be materially enhanced … Read more

Dividend Increases/Decreases for the Week May 6

by

Below we provide a list of firms that raised their dividends during the week ending May 6. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week      American Financial (AFG): now $8.00 per share special dividend, was $0.56. Amerigo Resources (ARREF): now CAD 0.03 per share quarterly dividend. Arbor Realty Trust (ABR): now $0.38 per share quarterly dividend, was $0.37. Arc Resources (AETUF): Now CAD 0.12 per share quarterly dividend, was CAD 0.10. Barrick Gold (GOLD): now $0.20 per share quarterly dividend, was $0.10. Baxter (BAX): now $0.29 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week Ending December 15

by

Below we provide a list of firms that raised/lowered their dividends during the week ending December 15. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Abbot Laboratories (ABT): now $0.28 per share quarterly dividend, was $0.265. AES (AES): now $0.13 per share quarterly dividend, was $0.12. Air Lease (AL): now $0.10 per share quarterly dividend, was $0.075. Altius Minerals (ATUSF): now CAD 0.04 per share quarterly dividend, was CAD 0.03. Amgen (AMGN): now $1.32 per share quarterly dividend, was $1.15. AT&T (T): now $0.50 per share quarterly dividend, was $0.49. Balchem … Read more