Like Annaly Capital Management it has 15% dividend and nobody buys it? Are you crazy?:eek: :eek: :eek:
Why doesn't nobody buy stocks with 15-20% dividend?
- Thread starter failed_trad3r
- Start date
"Why doesn't nobody buy.." ? You sound like a combination of Jim Cramer and Larry the Cable Guy. I'm not normally a grammar Nazi, but jeez..
If you want a high dividend, buy it yourself and hope no one else does. Because if price goes up, yield goes down.
If you want a high dividend, buy it yourself and hope no one else does. Because if price goes up, yield goes down.
I haven't looked at the stock in a while, but from what I remember those dividends are a product of financial leverage. What are long run (5 yr) estimates ? There is a bit of risk there to generate those cashflows.
The reason for that high dividend is because the market is pricing in declining dividends. That's the reason for the gap down in the chart. The divy was decreased for the next quarter.
And yes, NLY does use leverage and sometimes those types of stocks can quite rapidly go to zero. Look what happened to New Century or Thornburg Mortgage (TMA).
Sometimes yield hogs really get slaughtered.
And yes, NLY does use leverage and sometimes those types of stocks can quite rapidly go to zero. Look what happened to New Century or Thornburg Mortgage (TMA).
Sometimes yield hogs really get slaughtered.
Prime example of stupid: PGH. This was a $20 stock form 2005-2007 paying nice divies then whamo, single digits and the divy was cut.