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MTGE just declared a .90 dividend, up over .80 cents last quarter. Ex-dividend date is 3-13, look for MTGE to declare an SPO either on ex-dividend day or very shortly thereafter. Also, AGNC went ex-dividend today, and at $30+, I believe they'll declare an SPO very soon as well. If you're serious about getting into an M-REIT, the SPO should provide a good buying opportunity, so get in and hold into next quarters dividend run.
Will these M-REIT have anymore upside? Both are at their 2 and 5 year high.
I bought IVR at the stocks 4 year low. I've had a 20% gain since then.
Something is telling me to look for a steady dip before jumping in.
Something is telling me to look for a steady dip before jumping in.
MTGE has only been trading since August 2011, and yes, it is at a high, but you have to remember two things:
1. MTGE is managed by the same management team as AGNC, who has a proven track record of slow but steady growth of both book value and share price, and a conservative dividend policy for an M-REIT. I expect that MTGE will eventually wind up about even with AGNC and right now, being the younger cousin, it represents a greater value than AGNC. Now is a great opportunity to get in much closer to the ground floor than the ceiling.
2. An M-REIT is an income investment, and is not typically the type of stock one buys for captial appreciation. When you have a stock that yields 14%-16%, and you get the chance to buy in on a 5% dip, go for it. I'll happily live with a 5%-10% annual share price gain if I'm getting that kind of yield.
Follow the book value on M-REITS. When they announce earnings, look to see what the increase in book value is and buy the stock whenever it dips and trades at a slight discount to book. They will typically run up leading into ex-dividend day, and depending on how much it runs, you can decide to either sell before ex-div and take your profit or hold through ex-div, collect the dividend and buy more on the ex-div and/or SPO dips. Right now, both are trading at premiums to book, which is why i recommend waiting until the SPOs that I expect will be very soon (maybe even tomorrow for AGNC). GLTA!
MTGE has only been trading since August 2011, and yes, it is at a high, but you have to remember two things:
1. MTGE is managed by the same management team as AGNC, who has a proven track record of slow but steady growth of both book value and share price, and a conservative dividend policy for an M-REIT. I expect that MTGE will eventually wind up about even with AGNC and right now, being the younger cousin, it represents a greater value than AGNC. Now is a great opportunity to get in much closer to the ground floor than the ceiling.
2. An M-REIT is an income investment, and is not typically the type of stock one buys for captial appreciation. When you have a stock that yields 14%-16%, and you get the chance to buy in on a 5% dip, go for it. I'll happily live with a 5%-10% annual share price gain if I'm getting that kind of yield.
Follow the book value on M-REITS. When they announce earnings, look to see what the increase in book value is and buy the stock whenever it dips and trades at a slight discount to book. They will typically run up leading into ex-dividend day, and depending on how much it runs, you can decide to either sell before ex-div and take your profit or hold through ex-div, collect the dividend and buy more on the ex-div and/or SPO dips. Right now, both are trading at premiums to book, which is why i recommend waiting until the SPOs that I expect will be very soon (maybe even tomorrow for AGNC). GLTA!
Thanks for explaining that. What do you think about IVR? Should I hold or take my profits?
As i expected, AGNC just filed an SPO of 54 million shares. Tomorrow will be the day to buy in, probably low $29, maybe even high $28 if we're lucky.
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