New Year Brings Mortgage REIT Offerings Wednesday, January 5, 1:45 PM ET, by Market News Video Staff Just three trading days into the new year and mortgage REIT investors have already seen ...
Mortgage REIT Investors Jockey For Position Following Dividends and Stock Offerings
By Market News Video Staff, Thursday, December 16, 1:31 PM ET
Mortgage REIT investors have spent the better part of December sifting through press releases from companies such as Dynex Capital (NYSE:DX), Annaly Capital Management (NYSE:NLY), Hatteras Financial (NYSE:HTS) and MFA Financial (NYSE:MFA). What investors have been searching for are dividend announcements and stock offerings -- and there have been plenty of both! In fact, every day this week investors have seen new press releases from these companies, with the news sending the individual stocks both higher and lower.
On Monday morning, Dynex Capital upped its quarterly dividend to 27 cents per share, initially impressing investors and sending the stock higher, but after the bell that very same day, the company announced a public offering of 5 million shares (which was later increased to 6 million shares) which sent the stock sharply lower on Tuesday morning. The company was able to price the offering at $10.20 due to strong demand and the stock is currently trading above the offering price. For a list of ETFs that hold shares of Dynex Capital, visit the ETFs Containing DX page.
On Tuesday afternoon, investors found a press release from Hatteras Financial with disappointing news about the company's fourth quarter dividend. The company reduced its quarterly dividend for the second time this year to $1.00 per share, sending shares lower on Wednesday. If the company is able to maintain this dividend amount, investor would see a forward yield of approximately 13%. For a list of ETFs that hold shares of Hatteras Financial, visit the ETFs Containing HTS page.
After the bell on Wednesday, investors heard from Annaly Capital Management. The company reduced its dividend by about 6% to 64 cents per share. While the dividend was inline with estimates and had the stock trading higher on Thursday, NLY has traded lower all week as fears of a secondary could be realized before the end of the month. Currently, Annaly is yielding investors a little more than 14% based on the new dividend. For a list of ETFs that hold shares of Annaly, visit the ETFs Containing NLY page.
And the news continues today, with MFA Financial announcing its fourth quarter dividend this morning. The company raised its dividend by a penny to 23.5 cents per share, and investors applauded the news. On Thursday afternoon, shares of MFA were higher and the forward yield is approximately 11.5%. For a list of ETFs that hold shares of MFA Financial, visit the ETFs Containing MFA page.
Despite the volatility in the sector this week, the iShares FTSE NAREIT Mortgage Plus Capped Index Fund (AMEX:REM) is trading higher by more than 3% and is yielding investors approximately 10.5%. REM contains all four of the Mortgage REITs mentioned above, with Annaly Capital being the largest holding at 20.75% of the portfolio. For a full list of companies, visit the REM Holdings page.
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