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 ...
By Market News Video Staff, Monday, June 27, 2:13 PM ET
The mortgage REIT sector has seen a number of stock offerings and dividend announcments in the month of June as companies continue to take advantage of unprecidented interest rate spreads. Below we will cover some of the more notables dividends and offerings of the month.
Both Investco Mortgage Capital (NYSE:IVR) and American Capital Agency (NASDAQ:AGNC) were able to raise funds this month. IVR issued 19,550,00 shares raising approximately $394 million before expenses, while AGNC expects to raise approximately $1.2 billion before expenses (AGNC offering closes June 28th). JMP Securities felt strongly enough to upgrade shares of AGNC to Outperform and set a price target of $30.50 per share.
Mortgage REITs increasing their dividends include Annaly Capital Management (NYSE:NLY), which raised its dividend from 62 cents per share up to 65 cents, and Capstead Mortgage (NYSE:CMO), which raised its dividend from 41 cents per share up to 48 cents per share. Both stocks jumped on the news as investors continue to reach for better yields.
But the news was not all good from companies declaring dividends. Chimera Investment Corporation (NYSE:CIM) lowered its dividend to 13 cents per share, a reduction of 1 cent compared to the most recent dividend. The stock is flat since the dividend announcement, but lower by more than 8% in the month of June as investors continue to remove risk from their portfolios.
For investors looking to add exposure to the sector without taking on company specific risks can consider the iShares FTSE NAREIT Mortgage Plus Capped Index Fund (REM), which holds all five stocks mentioned in this article. For a complete list of this ETFs holdings, visit the REM Holdings page on ETFChannel.com
The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors — anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors, commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow the performance trail wherever it leads us.
This Article's Word Cloud:AGNCAmericanBothCapitalInvestmentJuneManagementMortgageNYSESecuritiesallowsapproximatelyassetbeforecentsclassescompaniescompletecompletelycontinuecountriescoverdesigneddividenddividendsexpensesfromgrowthincreasinginvestorsmonthmoremostnewsofferingsportfolioportfoliosraiseraisedreachremovesectorsharesharesshortstockstockstheirthiswhich
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
Analyst Moves: SBUX, NDSN
Daily Dividend Report: KFT, MRK, C, WRB, DCI
Analyst Moves: SBUX, NDSN
Weekly Market Wrap: May 11, 2012
Week Ahead Market Report: May 14, 2012
Weekly Market Wrap: May 18, 2012
