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Post by xray on Sept 16, 2021 17:25:49 GMT
NRZ News:
Business Wire New Residential Investment Corp. Announces Pricing of Public Offering of Preferred Stock
Tue, September 14, 2021, 4:15 PM
NRZ +0.32%
NEW YORK, September 14, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") announced that it priced an opportunistic underwritten public offering of 17,000,000 shares of its 7% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock (the "Preferred Stock") with a liquidation preference of $25.00 per share, for gross proceeds of approximately $425 million, before deducting underwriting discount and other estimated offering expenses. The Company intends to apply to list the Preferred Stock on the New York Stock Exchange under the symbol "NRZ PR D." The offering is expected to close on September 17, 2021, subject to customary closing conditions. In connection with the offering, the Company has granted the underwriters an option for a period of 30 days to purchase up to an additional 2,550,000 shares of the Preferred Stock.
The Company intends to use the net proceeds from this offering for investments and general corporate purposes.
Live Long and Prosper....
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Post by richardsok on Sept 16, 2021 19:59:09 GMT
TY, X.
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Post by xray on Sept 17, 2021 16:25:54 GMT
NRZ "BUY" Opinion article:
2 Big Dividend Stocks Yielding 9%; RBC Says ‘Buy’ TipRanks Thu, September 16, 2021, 8:53 PM
NRZ +0.06%
Every investor wants a sure return – that’s the way to make money in the markets, after all. With the main indexes all showing strong gains for the year (19% on the S&P 500, and 18% on the NASDAQ), those returns are clearly on the table. But there are some shorter-term downward moves, and plenty of market experts are counseling both optimism and caution.
RBC chief U.S. equity strategist Lori Calvasina notes that the upward trend has been both substantial and sustained, and she is revising her mid- to long-term forecasts for the S&P accordingly.
"For 2021, we are lifting our S&P 500 price target and EPS forecast by ~4% vs. our prior views. Our 2021 price target moves from 4,325 to 4,500 and our 2021 EPS forecast moves from $192 to $200. For 2022, we are moving our EPS forecast up by 2.7% to $222 from $216 and we are introducing a price target of 4,900, roughly a 9% gain from our 2021 price target,” Calvasina noted.
So far, so good. But in the near-term, Calvasina notes that there is a strong chance of a pullback before the years’ end, one that will see significant dips in share values.
“…we want to be clear about the message we are sending. We continue to think the S&P 500 will experience a bout of volatility/meaningful pullback before the year is up, a call that we’ve been making for the past several months… [We] see economic recession risks as low, reducing the likelihood of a full growth scare, and intend to treat it as a buying opportunity,” the strategist explained.
Short term losses, long term gains, and a buying opportunity in the offing – it sounds like RBC is predicting a stock environment that’s not for the risk-averse. Calvasina’s colleagues among the RBC stock analysts would seem to agree, as they have been pointing out equities with solid dividend returns – we’re talking about at least 9% here. These are classic defensive plays for investors in an uncertain market environment.
We’ve used the TipRanks database to look up the data on two of these picks; here are the details, along with analyst commentary to add some color.
Sibanye Stillwater (SBSW)
We’ll start with Sibanye Stillwater, a South African mining company with substantial operations in Africa and the Americas. The company has precious metal mining ops, including gold and platinum, in both South Africa and the US, along with copper and gold exploration rights in North and South America.
The company reported 983K ounces of total gold production last year, along with 2.783 million ounces of platinum group metals. The company’s reserves include over 66 million ounces of platinum group metals, and over 11 million proven ounces of gold. These reserves make Sibanye Stillwater one of the world’s leaders in gold output, and the dominant player for the platinum group.
Sibanye’s 1H21 report showed a 39-cent EPS, up 141% from the previous year, and a record cash flow of $1.2 billion. The company had over $710 million cash on hand against a net debt of $930 million. This gave the company the confidence to declare a dividend, for payment this month, of 65 cents per share, up from 10 cents one year ago. At the current rate, the dividend gives a yield of 9.5%, far higher than the 2% average dividend found among public companies generally.
RBC’s Tyler Broda likes what he sees here, especially in the company’s ability to keep up returns to shareholders: “We continue to see SBSW attractively priced, generating mining-industry-leading cash returns… With PGM prices stabilizing (especially rhodium), we continue to see the company provide attractive return potential.”
Looking toward the end of the year, the analyst adds, “We estimate the balance sheet to be in a net cash position of $974m by the end of the year, well above the $350m cash buffer suggested by the company's strategic asset allocation.”
In line with these comments, Broda sets an Outperform (i.e. Buy) rating on the stock, with a $28 price target, suggesting room for a whopping 114% growth in the year ahead. (To watch Broda’s track record, click here)
Overall, while there are only two recent reviews on SBSW, they both agree that this is a Buying proposition, giving the stock its unanimous Moderate Buy consensus rating. The share have a $25 average price target, which gives a 77% upside from the current $13.06 trading price. (See SBSW stock analysis on TipRanks)
New Residential Investment (NRZ)
Next up is a real estate investment trust, a category of company long-known as dividend champs. These companies exist to buy up, own, manage, and lease various types of real properties; they also make investments in mortgages and mortgage-backed securities. Tax regulations require them to return a high portion of profits to shareholders, and dividends are a common vehicle for that. New Residential has wide-ranging portfolio, valued at more than $6 billion, with roughly half of the total being mortgage servicing rights.
In recent weeks, New Residential has reported several developments of interest to investors, including second quarter results, an important acquisition, and a substantial increase in its dividend payment. Regarding the quarterly report, the company showed EPS of 26 cents per share, up from a 2-cent per share loss in the year-ago quarter. The merger was the completion of the previously announced purchase of Caliber Home Loans, bringing the mortgage company’s loan origination and servicing into New Residential’s portfolio.
For our purposes here, the dividend may be the most important. New Residential declared a 25 cent per common share payment, to go out in October. At current levels, this annualizes to $1 per share and gives a yield of 9%. New Residential cut its dividend in April of last year, in response to COVID pressures, and has raised it four times since then.
RBC’s Kenneth Lee, rated 5-stars by TipRanks, came away bullish after hearing New Rez’s management in a call on the company’s status. Lee wrote: “We hosted an investor call with the senior management team of NRZ. We came away thinking the combination of NRZ's Newrez-Caliber mortgage business and investment portfolio could allow NRZ to perform well under all rate environments, and we gained further insight into potential market share gains, and recent gain-on-sale margin trends. We continue to favor NRZ given the potential benefit from rising rates with its MSR portfolio, potential for dividend increases over time as earnings grow…”
To this end, Lee rates NRZ shares an Outperform (i.e. Buy) and his $12 price target implies an upside of 9.5% this coming year. Based on the current dividend yield and the expected price appreciation, the stock has 18.5% potential total return profile. (To watch Lee’s track record, click here)
With 4 recent reviews on file, and all to Buy, New Residential gets a unanimous Strong Buy consensus rating. The stock is selling for $10.90 and its $12.63 average target suggests room for ~15% growth in the next 12 months. (See NRZ stock analysis on TipRanks)
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Live Long and Prosper....
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Post by xray on Sept 18, 2021 14:17:36 GMT
Another "NRZ Buy" Opinion article: Nice to see some verification of all of our current analysis:
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Here's My Top Value Stock to Buy Right Now This mortgage stock's value and income make a great combination.
Brent Nyitray, CFA (Tmfbrentnyitray) Sep 18, 2021 at 7:22AM
Key Points
New Residential is now a top mortgage originator. The market still values New Residential as just a mortgage REIT. Investors might benefit from the company's efforts to unlock currently hidden value. Finding value when the stock market is setting new records tends to be difficult. Investors have to be careful that they are not buying stocks as earnings are peaking. This is often the difference between a value stock and a value trap. Sometimes a stock is cheap because the market is giving the company no credit for a line of business or some sort of asset. The market has beaten up on mortgage real estate investment trust New Residential (NYSE:NRZ) -- but it's not giving the company's cash-generating operating business enough credit.
New Residential vaults into top echelon of mortgage lenders
New Residential has three main areas of operation: mortgage investing, servicing, and origination. I recently wrote about New Residential's servicing portfolio and how it could help mitigate the effects of the Federal Reserve's impending reduction in asset purchases. But investors also need to know about New Rez's mortgage origination business.
New Residential has been beefing up its mortgage origination business, and recently completed its purchase of Caliber Home Loans. This transaction puts New Rez in the top five nonbank lenders in the U.S., and on a pro forma basis it funded $45 billion in origination in the second quarter.
Unlike mortgage REITs, mortgage originators generally trade well above book value, especially those that interact primarily with the borrower, as opposed to those who purchase completed loans from smaller lenders. Mortgage REITs rely mainly on interest income, but originators have the ability to make a loan, sell it, and make another.
At the end of 2020, New Residential estimated there was between $2.90 and $6.52 per share in hidden value with the mortgage origination business -- and that figure didn't factor in the Caliber deal. With the acquisition of Caliber, that number should increase, given that Caliber has a strong retail footprint and presence in the purchase market, which is worth more than the typical correspondent-type lender that New Residential had prior to the acquisition. This is important because the purchase market is much more stable than the refinance market. If rates rise, refinance opportunities decrease greatly, but people still buy houses. A retail outlet which has an office and loan officers out in the field, talking to realtors will get a much more stable flow of business than a lender that relies on purchasing loans from other, smaller lenders. That is why Caliber adds so much value to New Residential.
Mortgage originators trade at a premium to mortgage REITs
New Residential should be thought of as a sum-of-the-parts story, with overlooked assets that investors don't factor into the share price, leading to a lower-than-deserved valuation. In these circumstances, the company may find it attractive to spin off those assets in order put a value on them. New Residential discussed such a possibility last year.
New Residential has historically been mainly a mortgage REIT, and like most mortgage REITs, it trades on dividend yield and book value. At the end of June, the company had a book value per share of $11.27 and is trading at a 3% discount to book. This is a typical multiple for a mortgage REIT these days, and you can think of book value as "fair value."
But mortgage originators' ability to "recycle" their assets makes them worth more. If you look at the other top non-bank originators (Rocket, UWM Holdings, Loan Depot, and PennyMac Financial), you will see these stocks generally trade around three times book value per share.
New Residential will probably update shareholders on the combined mortgage bank's projected earnings and book value when it announces third-quarter earnings in October. At that point we will have a better indication of the embedded value in the mortgage origination operations.
The company just increased its dividend to $0.25 per quarter, which gives the stock a dividend yield of over 9%. This is well above the typical mortgage originator, and more in line with mortgage REITs. With New Residential, you get the steady income of a mortgage REIT along with the operating company, which provides growth potential down the road. New Residential is the sort of stock that would appeal to both a value investor and an income investor.
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Live Long and Prosper....
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Post by xray on Sept 22, 2021 14:05:44 GMT
Two Dividend announcement: Two Harbors Investment Corp. Announces Third Quarter 2021 Common and Preferred Stock Dividends Tue, September 21, 2021, 4:30 PM TWO +0.77% TWO-PA 0.00% TWO-PB 0.00% NEW YORK, September 21, 2021--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today declared a dividend of $0.17 per share of common stock for the third quarter of 2021. The third quarter dividend is payable on October 29, 2021 to common stockholders of record at the close of business on October 1, 2021. Two Harbors also declared today the following preferred stock dividends: a dividend of $0.50781 per share of the 8.125% Series A Cumulative Redeemable Preferred Stock; a dividend of $0.47656 per share of the 7.625% Series B Cumulative Redeemable Preferred Stock; and a dividend of $0.45313 per share of the 7.25% Series C Cumulative Redeemable Preferred Stock. The Series A, Series B and Series C preferred dividends are payable on October 27, 2021 to the applicable preferred stockholders of record at the close of business on October 13, 2021. Two Harbors Investment Corp. Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in St. Louis Park, MN. Additional information is available at www.twoharborsinvestment.com. ---------- Comment: Dividend announcement was same as previous announcement. The last increase was last year [9/20] from $0.14 to $0.17/Qtr. At that time we expected a increase in the 4th Qtr. Unfortunately, TWO has slipped a little in book value from 6.70 to 6.42 so we cannot expect another increase until next year.... Disclosure: Some of us are currently maintaining a phase #3 [6-8%] position in TWO.... Live Long and Prosper....
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Post by xray on Sept 22, 2021 21:04:27 GMT
USDP News: Business Wire USD Partners Issues Updated Investor PresentationWed, September 22, 2021, 4:21 PM USDP +3.61% HOUSTON, September 22, 2021--(BUSINESS WIRE)--USD Partners LP (NYSE:USDP) (the "Partnership") announced today that it will post an updated investor presentation on its website. Among other information, the presentation includes an overview of the Partnership, discusses the benefits to the Partnership from its Sponsor’s Diluent Recovery Unit project and includes updated information with respect to the Western Canadian crude oil market activity. The presentation will be made available on the Partnership’s website no later than 5:00pm Eastern Time on Wednesday, September 22, 2021, at www.usdpartners.com on the "Events & Presentations" sub-tab under the "Investors" tab. About USD Partners LPUSD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC ("USD") to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The Partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies and refiners. The Partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The Partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the Partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail. USD, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD’s solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USD, along with its partner Gibson Energy, Inc., is progressing on a long-term solution to transport heavier grades of crude oil produced in Western Canada to the U.S Gulf Coast through a Diluent Recovery Unit at the Hardisty Terminal and USD’s destination terminal in Port Arthur, Texas. Both projects are currently operating in the start-up phase. USD is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities. For additional information, please visit texasdeepwater.com. Information on websites referenced in this release is not part of this release. Category: CorporateView source version on businesswire.com: www.businesswire.com/news/home/20210922005984/en/---------- Live Long and Prosper....
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Post by xray on Sept 22, 2021 21:34:20 GMT
USDP closed today @ 6.32 [Up +0.06 from COB Friday]....
Live Long and Prosper....
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Post by xray on Sept 22, 2021 21:42:28 GMT
Penny Stocks Today's MktPrc's [from COB Friday] After the correction we just experienced:
KYN +0.06/sh NRZ +0.14/sh TWO +0.05/sh USDP +0.06/sh WMC -0.04/sh
Better than expected against some other performing securities that some of us follow
Live Long and Prosper....
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Post by Capital on Sept 23, 2021 15:09:11 GMT
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Post by xray on Sept 23, 2021 18:58:08 GMT
Capital, Your: www.fidelity.com/news/article/top-news/202109230711RTRSNEWSCOMBINED_KBN2GJ0TS-OUSBS_1Just an FYI. Not making any comments or making any judgements about OTC markets myself. ---------- Thank you for the input.... Article Reference Paragraph: 'SHOW ME THE MONEY' A new wave of amateur investors has piled in to penny stocks over the past 18 months, trading on low or no-fee retail broker platforms and hyping up their positions on social media. In August, there were 601.1 billion transactions datawrapper.dwcdn.net/q3K2z/2 on penny stock markets tracked by the Financial Industry Regulatory Authority, a 130% jump compared with a year earlier, but down from a peak of 1.9 trillion transactions in February. ---------- Amateur investors normally get burned "big time". Penny stock type investors get " slaughtered". I haven't observed investors on this website that would meet that description.... Penny stocks are " VERY DANGEROUS" and " BEYOND NORMAL RISK". Amateur investors want to "get rich quick" and that normally never happens. With that said.... Many investors, including myself analyze to death any penny stock we might have a interest in [always single opinion]. We always "assume" that any information being passed on has already been highlighted as " HIGH RISK" and that penny stock investors will analyze the security with their own analysis. The securities that most of us invest in have already passed many different analysis parameters and are " NEVER" from hyped up positions from social media. Most of us stay away from social media so as not be influenced with "noise" that is being hyped by other social media interests.... One of the ways of starting a penny stock investment is that it be attached with a dividend as most will never payout money in advance of any hype [IMHO]. Over time this thinking has served us well. Penny Stock investors have learned [lessons learned] that " OVER TIME" [years] a good Penny Stock pick [with a increasing dividend] will reward us extremely well [IMHO].... Live Long and Prosper....
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Post by xray on Sept 24, 2021 13:49:05 GMT
KYN declares "normal" Dividend:
GlobeNewswire Kayne Anderson Energy Infrastructure Fund Announces Distribution of $0.175 per Share for Q3 2021 Kayne Anderson Energy Infrastructure Fund, Inc. Thu, September 23, 2021, 5:45 PM
KYN +2.40%
HOUSTON, Sept. 23, 2021 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) (NYSE: KYN) announced today a quarterly distribution of $0.175 per share for the fiscal quarter ended August 31, 2021. This distribution is payable to common stockholders on October 8, 2021 (as outlined in the table below).
Ex-Date: 10/1/21 Record Date: 10/4/21 Payment Date: 10/8/21 Distribution: $0.175 [$0.75/Yr] Return of Capital: 100% Estimate(1)
(1) The return of capital estimate is based on the Company’s anticipated earnings and profits. The final determination of the tax character of distributions may differ substantially from this preliminary information.
The Company expects the next distribution to be declared in December 2021. Payment of future distributions is subject to the Board of Directors’ approval, as well as meeting the covenants of the Company’s debt agreements and terms of its preferred stock.
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KYN's MktPrc this morning was 8.06 [up from 7.86 COB last Friday] in early morning trading. KYN's NAV this morning was 9.05 [@discount and up from 8.88 COB last Friday]. Dividend is still >9%....
COMMENT: There are many opinions on "return of capital". "My read [and (by analysis) understanding (sole opinion)]" of ROC is that as long as the "NAV" is continually rising, I could care less about ROC statements made by the security announcements....
Disclosure: Some of us continue to maintain a Phase #4 position in KYN [8-10% of total portfolio]....
Live Long and Prosper....
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Post by xray on Sept 24, 2021 14:07:55 GMT
Business Wire Western Asset Mortgage Capital Corporation Declares Third Quarter Dividend of $0.06 Per Share Thu, September 23, 2021, 4:15 PM
WMC +1.98%
PASADENA, Calif., September 23, 2021--(BUSINESS WIRE)--Western Asset Mortgage Capital Corporation (the "Company") (NYSE: WMC) announced today that its Board of Directors has declared a cash dividend of $0.06 per share for the third quarter of 2021. Today’s dividend is payable on October 26, 2021 to common shareholders of record as of October 4, 2021, with an ex-dividend date of October 1, 2021.
In addition, the Company estimates that its GAAP book value per share, as of August 31, 2021, was approximately $3.67. The August 31, 2021 estimated GAAP book value is unaudited, has not been verified or reviewed by our external auditors and is subject to normal quarterly reconciliation and other procedures. Further, the estimated book value is as of August 31, 2021 and does not include the dividend announced today. GAAP book value will fluctuate with market conditions, the results of the Company’s operations and other factors. The Company’s current GAAP book value may be materially different from the August 31, 2021 estimated GAAP book value.
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WMC's MktPrc this morning was 2.56 [down from 2.57 COB last Friday] in early morning trading. WMC's Book Value this morning [see above reported statement] was 3.67 [@discount and up from 3.28 COB last announcement on 8/4]. Dividend is still >9%....
COMMENT: There are many opinions on "return of capital". "My read [and (by analysis) understanding (sole opinion)]" of ROC is that as long as the "NAV" or "Book Values" are continually rising, I could care less about any ROC statements made by the security announcements.In addition, "final" ROC's are not determined until 12/31 and markets can change the reported ROC [plus/minus] during the year substantially....
Warning: WMC does "NOT" currently have good analysis scores currently with a report card grade of 57 and a power reading of 74. Star rating is currently "4" and their 13wk star rating is 4.00 [neutral zone]....
Disclosure: Some of us continue to maintain a Phase #0 position in WMC [0-2% of total portfolio]....
Live Long and Prosper....
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Post by richardsok on Sept 24, 2021 14:16:06 GMT
Following all your posts, X.
Greatly appreciated.
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Post by cactusjack on Sept 24, 2021 18:53:42 GMT
Following all your posts, X. Greatly appreciated. I agree. The input and effort you put into your posts is greatly appreciated, as are the insights provided by Rich. I, too get the broker eye-roll due to my penchant for closed end funds and the occasional foray into high volatility stuff. Thanks to you both. Jack
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Post by xray on Sept 27, 2021 21:36:51 GMT
NRZ News: STOCKS DIVIDEND STOCKS Top Dividend Stocks for October 2021 NLY, NRZ, AGNC, SCCO, and TFSL are top by forward dividend yield
By NATHAN REIFF Updated September 27, 2021 Reviewed by JULIUS MANSA Dividend stocks are companies that pay out a portion of their earnings to a class of shareholders on a regular basis. These companies usually are well established, with stable earnings and a long track record of distributing some of those earnings back to shareholders. The distributions are known as dividends and may be paid out in the form of cash or as additional stock. Most dividends are paid out on a quarterly basis, but some are paid out monthly, annually, or even once in the form of a special dividend. While dividend stocks are known for the regularity of their dividend payments, in difficult economic times, those dividends may be cut to preserve cash.
One useful measure for investors to gauge the sustainability of a company's dividend payments is the dividend payout ratio. The ratio is a measure of total dividends divided by net income, which tells investors how much of the company's net income is being returned to shareholders in the form of dividends versus how much the company is retaining to invest in further growth. If the ratio exceeds 100% or is negative (meaning net income is negative), this indicates the company may be borrowing to pay dividends. In these two cases, the dividends are at a relatively greater risk of being cut.
Below, we look at the top five dividend stocks in the Russell 1000 by forward dividend yield, excluding companies with payout ratios that are either negative or in excess of 100%. Just one of the stocks on our list below – New Residential Investment Corp. (NRZ) - has outperformed the broader market, represented by the Russell 1000 Index. The Russell 1000 has provided a total return of 40.7% over the past 12 months.1 This market performance number and all statistics below are as of Sept. 23, 2021.
Annaly Capital Management Inc. (NLY) Forward dividend yield: 9.93% Payout ratio: 40.6% Price: $8.86 Market cap: $12.8 billion 1-year total return: 33.5%1
Annaly Capital Management is a diversified capital management company that invests in and finances residential and commercial assets. Its investments include agency mortgage-backed securities (MBS), residential real estate, and middle market lending. The company has about $93 billion in total assets.2 On Sept. 9, Annaly announced a common stock cash dividend of $0.22 per common share for Q3 2021. This dividend is payable Oct. 29 to shareholders of record as of Sept. 30, 2021.3
New Residential Investment Corp. (NRZ) Forward Dividend Yield: 8.98% Payout Ratio: 54.3% Price: $11.13 Market Cap: $5.2 billion 1-Year Total Return: 56.0%1 New Residential Investment is a mortgage REIT. It provides capital and services to the mortgage and financial services industries. The company invests in assets with stable, long-term cash flows. Its investment portfolio includes mortgage servicing-related assets, non-agency securities, residential loans, and other related investments.4 On Sept. 14, New Residential Investment Corp. announced the launch of a public offering of 17,000,000 shares of its 7% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock. The company set a liquidation preference of $25.00 per share to bring in gross proceeds of approximately $425 million, less underwriting discount and other expenses.5
AGNC Investment Corp. (AGNC) Forward dividend yield: 8.88% Payout ratio: 43.8% Price: $16.21 Market cap: $8.5 billion 1-year total return: 24.2%1 AGNC Investment is an internally-managed mortgage real estate investment trust (REIT) that primarily invests in agency MBS on a leveraged basis. It finances its holdings through collateralized borrowings structured as repurchase agreements (repos).6 On Sept. 13, the company declared a cash dividend of $0.12 per share of common stock for Sept. 2021. The dividend is payable on Oct. 12 to common stockholders of record as of Sept. 30, 2021.7
Southern Copper Corp. (SCCO) Forward dividend yield: 6.34% Payout ratio: 60.9% Price: $56.75 Market cap: $43.9 billion 1-year total return: 30.1%1 Southern Copper is an integrated copper producer. It produces copper, molybdenum, zinc, lead, coal, and silver. The company operates mining, smelting, and refining facilities in Peru and Mexico, and conducts exploration activities in Chile.8
TFS Financial Corp. (TFSL) Forward dividend yield: 6.04% Payout ratio: 72.7% Price: $18.72 Market cap: $5.3 billion 1-year total return: 38.3%1 TFS Financial is a federally chartered stock holding company that conducts its principal activities through its wholly owned subsidiaries. It offers retail consumer banking services, including mortgage lending, deposit gathering, and other types of financial services. It had total consolidated assets of $14.6 billion as of Sept. 30, 2020.9
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Comment: Current data on NRZ [COB Friday] shows NRZ at 10star [last 13wk period] with a 13wk average star rating at 10star. In addition, NRZ's report card rating is 100 with a continual power rating of 100. Intrinsic value increased by +$0.20/sh for last 3-week period with a MktPrc increase of +$0.23/sh for the last 3-wk period. The current trend for NRZ is double of anything that some of us are currently tracking.... Many of us do have any position in the other securities mentioned in the above article because of a current negative analysis....
Disclosure: Some of us continue to hold a phase #4 [8-10%] position in NRZ....
Live Long and Prosper....
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Post by xray on Sept 29, 2021 14:12:01 GMT
Penny Stocks Review: Today's MktPrc's with increases vs decreases [from COB Friday] After Yesterday's correction that we have just experienced:
Against early morning trading this morning: KYN +0.09/sh [NAV up +0.08] NRZ -0.07/sh TWO +0.02/sh USDP +0.03/sh WMC -0.01/sh
Better than expected [considering that they are "Penny Stocks"] against many other securities in our current portfolio's that some of us follow....
Live Long and Prosper....
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Post by xray on Sept 30, 2021 20:22:55 GMT
Penny Stocks Review: Today's MktPrc's with increases vs decreases [from COB Friday] After Today's correction that we have just experienced:
Against Closing Market Prices: KYN +0.01/sh [NAV up +0.12 [yesterday's]] NRZ -0.01/sh TWO -0.30/sh USDP -0.05/sh WMC +0.07/sh
Better than expected [considering that they are "Penny Stocks"] against many other securities in our current portfolio's that some of us follow....
Live Long and Prosper....
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Post by xray on Oct 1, 2021 14:13:57 GMT
NRZ News .... "WARNING" ALERT
Zacks Implied Volatility Surging for New Residential (NRZ) Stock Options
Zacks Equity Research Fri, October 1, 2021, 8:30 AM
Investors in New Residential Investment Corp. NRZ need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 21, 2022 $3.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for New Residential shares, but what is the fundamental picture for the company? Currently, New Residential is a Zacks Rank #3 (Hold) in the REIT and Equity Trust industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 35 cents per share to 33 cents in that period.
Given the way analysts feel about New Residential right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Comment: My "WARNING" is never to hold too much of any one investment [especially when in a "Penny Stock"]. Analysis by investors need to be done and a individual's "RISK TOLERANCE" needs to be addressed in holding NRZ....
Disclosure: No change in my current phase #4 position in NRZ Insider on 4/19/21 bought 100,000 shares @ 10.10 and there was no buy/sell activity since then: As of 11:59pm ET October 1st, 2021 Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price Jun 1/21 May 28/21 Saltzman David Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Mcginnis Robert Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Jacobs Douglas L Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Finnerty Kevin J Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Lenehan Pamela F Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 10,397 Jun 1/21 May 28/21 Sloves Andrew Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Apr 19/21 Apr 19/21 Nierenberg Michael Direct Ownership Common Stock P - Open market or private purchase Footnote and/or Remark 100,000 $10.10
Live Long and Prosper
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Post by xray on Oct 1, 2021 14:54:17 GMT
NRZ Followup:
Below is the description of what NRZ is all about. From this, we might be able to "analyze further" what all the fuss is in this one:
Description
New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through five segments: Origination, Servicing, MSR Related Investments, Residential Securities and Loans, and Consumer Loans. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs. It also invests in real estate securities and residential mortgage loans, as well as in consumer loans, including unsecured and homeowner loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. New Residential Investment Corp. was founded in 2011 and is based in New York, New York.
Live Long and Prosper....
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Post by xray on Oct 8, 2021 18:43:54 GMT
News: TWO TipRanks Dividend Stocks Under $10 With 10% Dividend Yield TipRanks Fri, October 8, 2021, 9:57 AM In this article:
TWO +0.31%
TWO-PA +0.05%
TWO-PB -0.12%
Dividend stocks are the Swiss army knives of the stock market.
When dividend stocks go up, you make money. When they don’t go up — you still make money (from the dividend). Heck, even when a dividend stock goes down in price, it’s not all bad news, because the dividend yield (the absolute dividend amount, divided by the stock price) gets richer the more the stock falls in price.
Knowing all this, wouldn’t you like to own find great dividend stocks? Of course you would!
Using the TipRanks database, we’ve looked up two stocks that are offering dividends of ~10% yield – that’s more than 4x higher the average yield found in the markets today. Each of these is Buy-rated, with some positive analyst reviews on record, and best of all, they all offer investors a low cost of entry, under $10 per share. Let’s take a closer look.
Two Harbors Investment (TWO)
Looking at dividend stocks, it’s natural to start with a real estate investment trust (REIT), as these companies are known for their reliable, high-yield dividend payments. REITs focus their activities on the purchase, ownership, leasing, and management of real properties in the residential and commercial segments. They will also, as Two Harbors does, invest in mortgage-backed securities. Two Harbors has built the bulk of its portfolio through investments in residential MBSs.
REITs are required by Federal regulations to return a high percentage of earnings directly to investors, and they frequently use dividends to comply with that rule. Two Harbors is typical in this respect, and describes three considerations in its dividend policy: likely economic returns on the portfolio; taxable income; and sustainability of the payment. It’s no surprise then, that TWO pared back the dividend payment at the height of the COVID crisis to keep it in line with distributable earnings.
Since paring the dividend as low as 5 cents in April 2020, the company has raised it twice. The current payment, declared last month for 3Q21, is 17 cents per common share, or 68 cents annualized. This rate gives a yield of 10.5%, far better then the >2% yield found among dividend payers in the broader stock markets.
TWO has maintained its dividend at this level for a full year now, even though the company’s revenues and earnings have yet to recover to pre-COVID levels. The 2Q21 top line came in at just $41 million, and earnings were recorded at a loss of 48-cent EPS loss.
Even though the quarterly financial results disappointed, RBC analyst Kenneth Lee sees potential here.
“Despite disproportionate underperformance of high-coupon MBS assets in 2Q from spread widening and elevated prepay speeds, management believes high-coupon assets have favorable risk-adj returns going forward. TWO is in a strong position to take advantage of any potential investment opportunities in 2H or later due to potential Fed tapering,” Lee said.
The 5-star analyst added, "Combining a recent equity capital raise and liquidity on balance sheet, TWO is in a strong position to take advantage of potentially attractive investment opportunities in 2H of this year or later, if potential Fed tapering results in further mortgage spread widening."
To this end, Lee rates TWO an Outperform (i.e. Buy), and his $7.50 price target implies ~15% upside from the current share price of $6.51. Based on the current dividend yield and the expected price appreciation, the stock has ~25% potential total return profile.
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Comment: COB last Friday.... TWO is currently performing "NEUTRAL" [5star] with a 55 report card rating and a power rating of 68 [+6 difference in power rating indicates a rise is expected in the report card rating]. Current risk [Rf] to portfolio is +0.225 [required >+3.11].... Disclosure: Some of us are currently maintaining a phase #3 position in TWO [6-8%]....
Live Long and Prosper....
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Post by xray on Oct 11, 2021 16:25:34 GMT
NRZ News: Business Wire New Residential Investment Corp. to Acquire Genesis Capital LLC Mon, October 11, 2021, 7:00 AM
NRZ +1.04%
NRZ-PA -0.02%
NRZ-PB +0.24%
NRZ-PC +0.35%
NRZ-PD +0.48%
Acquisition of Genesis adds complementary capabilities in business purpose lending to New Residential’s suite of mortgage product offerings
NEW YORK, October 11, 2021--(BUSINESS WIRE)--New Residential Investment Corp. (NYSE: NRZ; "New Residential" or the "Company") announced today that it has entered into a definitive agreement with affiliates of The Goldman Sachs Group, Inc. ("Goldman Sachs") to acquire Genesis Capital LLC ("Genesis"), a leading business purpose lender that provides innovative solutions to developers of new construction, fix and flip and rental hold projects, and acquire a related portfolio of loans. Genesis is expected to originate approximately $2 billion of loans in 2021 and has originated over 12,000 loans since 2014. Genesis supports developers throughout the property lifecycle, partnering to create value for their long standing and new borrower relationships. New Residential intends for Genesis to operate as an independent subsidiary of New Residential.
"The acquisition of Genesis adds a new complementary business line to our Company and advances our ability to create and retain additional strong housing assets for our balance sheet," said Michael Nierenberg, Chairman, Chief Executive Officer and President of New Residential. "We are excited to work with the seasoned Genesis team and add business purpose lending to our suite of products, furthering our connectivity with a new subset of borrowers. We see the acquisition of Genesis as a great opportunity that supports our growing single-family rental strategy and one that allows us to capture additional unmet demand from our Retail and Wholesale origination channels."
"We are thrilled to join the New Residential family and share our mission of providing differentiated solutions for our borrowers," said Robert Wasmund, Chief Executive Officer of Genesis. "Over the years, we have grown Genesis into a leader within the business purpose lending industry, offering developers a broad suite of customized solutions. We pride ourselves on executional excellence, which is why almost all of our customers are repeat borrowers and our portfolio has exhibited minimal losses. We look forward to combining our experience with New Residential’s deep industry knowledge and robust balance sheet as we seek to expand our product offerings and grow in new markets."
Anthony Arnold, Managing Director at Goldman Sachs said, "We would like to thank the Genesis management team for their leadership over the course of our investment. Under our ownership the team has successfully scaled in new markets nationwide and grown their book substantially while maintaining exceptional credit quality. We are delighted that they have found a great partner to continue their growth and we wish them much success."
New Residential intends to finance the transaction with existing cash and committed asset-based financing from Goldman Sachs. The transaction is targeted to close during the fourth quarter of 2021, subject to certain approvals and customary closing conditions.
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to New Residential. Goldman Sachs & Co. LLC acted as exclusive financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Genesis.
ABOUT NEW RESIDENTIAL
New Residential is a leading provider of capital and services to the mortgage and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a complementary portfolio of investments and operating businesses. Since inception in 2013, New Residential has delivered over $3.7 billion in dividends to shareholders. New Residential’s investment portfolio is composed of mortgage servicing related assets (full and excess MSRs and servicer advances), residential securities (and associated called rights) and loans (including single family rental), and consumer loans. New Residential’s investments in operating entities include leading origination and servicing platforms through wholly owned subsidiaries, Newrez LLC and Caliber Home Loans Inc., as well as investments in affiliated businesses that provide mortgage related services. New Residential is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is managed by an affiliate of Fortress Investment Group LLC ("Fortress"), a global investment management firm, and headquartered in New York City. Fortress manages $53.9 billion of assets under management as of June 30, 2021 on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
ABOUT GENESIS
Genesis offers various funding options to the nation’s top residential single- and multi-family real estate developers, leveraging its expertise, proprietary data and long-term borrower relationships. Genesis delivers both agility and speed as well as reliable, integrated high-touch customer service. Headquartered in Sherman Oaks, California, Genesis has 170 employees.
ABOUT GOLDMAN SACHS
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
FORWARD-LOOKING STATEMENTS
Certain information in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, (i) Genesis’s future performance, including, not limited to, its expected origination of approximately $2 billion of loans in 2021, (ii) statements regarding Genesis’s and the related portfolio of loans’ impact on the Company’s business and future performance, and (iii) statements regarding the transaction, including the ability to obtain all required approvals and consummate the transaction on a timely basis or at all. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. These risks and factors include, but are not limited to, the risks relating to the transaction, including in respect of the satisfaction of closing conditions and the timing thereof; unanticipated difficulties financing the transaction; unexpected challenges related to the integration of Genesis’s businesses and operations; changes in general economic and/or industry specific conditions; difficulties in obtaining governmental and other third party consents in connection with the transaction; changes in general economic and/or industry specific conditions; unanticipated expenditures relating to or liabilities arising from the transaction or the acquired businesses; uncertainties as to the timing of the transaction; litigation or regulatory issues relating to the transaction or the acquired business; the impact of the transaction on relationships with, and potential difficulties retaining, employees, customers and other third parties; and the inability to obtain, or delays in obtaining, expected benefits from the transaction.
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Comment: This statement is very positive [IMHO] "a leading business purpose lender that provides innovative solutions to developers of new construction, fix and flip and rental hold projects, and acquire a related portfolio of loans". A way to get into the "fix and flip" housing without getting personally involved by investing separately [IMHO]....
Disclosure: Some of us continue to have a phase #4 [8-10% position] in NRZ [with a current risk factor [Rf] of +0.552 ... need >+389]....
Live Long and Prosper....
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Post by xray on Oct 11, 2021 16:29:51 GMT
"WARNING" to new/current investors.... [Invest "ONLY" to one's "RISK TOLERANCE"] Repeated from 10/1 "ALERT"
NRZ News .... "WARNING" ALERT
Zacks Implied Volatility Surging for New Residential (NRZ) Stock Options
Zacks Equity Research Fri, October 1, 2021, 8:30 AM
Investors in New Residential Investment Corp. NRZ need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 21, 2022 $3.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for New Residential shares, but what is the fundamental picture for the company? Currently, New Residential is a Zacks Rank #3 (Hold) in the REIT and Equity Trust industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 35 cents per share to 33 cents in that period.
Given the way analysts feel about New Residential right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Comment: My "WARNING" is never to hold too much of any one investment [especially when in a "Penny Stock"]. Analysis by investors need to be done and a individual's "RISK TOLERANCE" needs to be addressed in holding NRZ....
Disclosure: No change in my current phase #4 position in NRZ Insider on 4/19/21 bought 100,000 shares @ 10.10 and there was no buy/sell activity since then: As of 11:59pm ET October 1st, 2021 Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price Jun 1/21 May 28/21 Saltzman David Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Mcginnis Robert Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Jacobs Douglas L Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Finnerty Kevin J Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Jun 1/21 May 28/21 Lenehan Pamela F Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 10,397 Jun 1/21 May 28/21 Sloves Andrew Direct Ownership Common Stock A - Grant, award or other under Rule 16b-3(d) Footnote and/or Remark 9,452 Apr 19/21 Apr 19/21 Nierenberg Michael Direct Ownership Common Stock P - Open market or private purchase Footnote and/or Remark 100,000 $10.10
Live Long and Prosper
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Post by xray on Oct 13, 2021 10:53:40 GMT
WMC News: Business Wire Western Asset Mortgage Capital Corporation to Report Third Quarter 2021 Financial ResultsTue, October 12, 2021, 4:15 PM WMC +2.40% Conference Call and Webcast Scheduled for Friday, November 5, 2021 at 12:00 p.m. Eastern Time/9:00 a.m. Pacific Time PASADENA, Calif., October 12, 2021--(BUSINESS WIRE)--Western Asset Mortgage Capital Corporation (the "Company") (NYSE: WMC) today announced that it will release financial results for the third quarter ended September 30, 2021 after the market closes on Thursday, November 4, 2021. The Company will host a corresponding conference call with a live webcast on Friday, November 5, 2021 at 12:00 p.m. Eastern Time/9:00 a.m. Pacific Time, to discuss those results and answer questions. Individuals interested in participating in the conference call may do so by dialing (866) 235-9914 from the United States, or (412) 902-4115 from outside the United States and referencing "Western Asset Mortgage Capital Corporation." Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company’s website at www.westernassetmcc.com. ---------- Comment: Last "book value" reported [reported on 9/24] was 3.67. MktPrc closed @ 2.56 yesterday [up +0.03 from COB Friday].... Live Long and Prosper....
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Post by xray on Oct 13, 2021 11:16:17 GMT
WMC followup:
Insiders [on 9/20 and 10/5] have filled a form 3 [initial statement of beneficial ownership of securities]....
Live Long and Prosper....
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Post by xray on Oct 14, 2021 14:30:44 GMT
NRZ News: Top Real Estate Stocks To Buy With Dividends Above 5% Oct 14, 2021 by Brent Nyitray, CFA
With interest rates at such a persistently low level, finding yield is extremely difficult. Investors looking for income should take a look at the real estate investment trust (REIT) market for stocks that pay above-average dividends. REITs are required by law to pay out 90% of their earnings as dividends, which pretty much means big yields. Here are three REITs with yields over 5% that an income investor should consider.
New Residential has numerous business lines that will perform in all environments
New Residential (NYSE: NRZ) is a mortgage REIT that invests primarily in mortgage-backed securities, which are guaranteed by the U.S. government. The company also owns mortgage servicing rights and is a top-tier nonbank mortgage originator. This gives New Rez a diversified portfolio of operations that should perform well in all interest rate environments.
New Residential’s core portfolio consists of agency mortgage-backed securities, which are guaranteed by the U.S. government. The company also owns mortgage servicing rights, which are an unusual financial asset. The mortgage servicer collects mortgage payments, sends them to the ultimate investor, ensures property taxes and escrows are paid, and handles delinquencies. The servicer gets a fee of 0.25% per year as compensation for performing these services. Mortgage servicing is one of the few assets that increases in value as interest rates rise, which makes it an attractive asset in this environment.
Finally, New Rez has been building its mortgage origination arm and recently completed its acquisition of Caliber, which puts New Rez in the top tier of mortgage originators. At current levels, New Residential is trading with a dividend yield of 9.2%.
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Comment: [No longer Penny Stock Status (MktPrc >10.00)] NRZ [COB Friday]
Mkt Prc: 11.09 MktPrc increase/decrease last week: +0.16 MktPrc [early] this morning: 11.32 Star Rating: 10star [last 13wk period] 13wk Star rating: 10.00 Report card grade: 100 Power Rating: 100 Star Rating Projection: 100 Last weeks analysis rating: +378 [need >+292] Total analysis "Projection" [going forward]: +828 [need >+636] Trend: +5.32 [need >+4.36]
Book Value 11.27 MTB: +1.02 [need >+1.01] YTT: +3.80 [need >+3.41]
Dividend: 9.02% Discount: +1.02 [need >+1.00] Dividend continuation probability: +139 [need >+140]
Risk to portfolio [Rf]: +0.522 [need >+389] Intrinsic Value Change last week: +0.06 [need >+0.13]
Disclosure: Some of us continue to hold a phase #4 position [8-10%] in NRZ....
Live Long and Prosper....
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Post by xray on Oct 14, 2021 14:45:58 GMT
Hard to believe that the the CEF market is going "UP UP & AWAY" this morning and we are having a "LOT OF" trouble looking for any losers. What it should tell us is that the market "REMAINS" overvalued and our changes made during the dip is turning to be very profitable [IMHO]....
Live Long and Prosper....
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Post by xray on Oct 18, 2021 18:26:10 GMT
News TWO:
Insider Monkey Hedge Funds Are Cashing Out Of Two Harbors Investment Corp (TWO)? Asma UL Husna Mon, October 18, 2021, 9:02 AM
TWO-PA +0.18%
While the market driven by short-term sentiment influenced by the accommodative interest rate environment in the US, virus news and stimulus spending, many smart money investors are starting to get cautious towards the current bull run since March, 2020 and hedging or reducing many of their long positions. Some fund managers are betting on Dow hitting 40,000 to generate strong returns. However, as we know, big investors usually buy stocks with strong fundamentals that can deliver gains both in bull and bear markets, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Two Harbors Investment Corp (NYSE:TWO).
Is Two Harbors Investment Corp (NYSE:TWO) a buy, sell, or hold? Money managers were becoming less hopeful. The number of long hedge fund positions retreated by 2 lately. Two Harbors Investment Corp (NYSE:TWO) was in 30 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 32. Our calculations also showed that TWO isn't among the 30 most popular stocks among hedge funds. There were 32 hedge funds in our database with TWO holdings at the end of March.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Do Hedge Funds Think TWO Is A Good Stock To Buy Now?
At Q2's end, a total of 30 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from the previous quarter. By comparison, 16 hedge funds held shares or bullish call options in TWO a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Two Sigma Advisors, managed by John Overdeck and David Siegel, holds the most valuable position in Two Harbors Investment Corp (NYSE:TWO). Two Sigma Advisors has a $33.3 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is OZ Management, managed by Daniel S. Och, which holds a $17.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions comprise Ken Griffin's Citadel Investment Group, Israel Englander's Millennium Management and Paul Glazer's Glazer Capital. In terms of the portfolio weights assigned to each position Cadian Capital allocated the biggest weight to Two Harbors Investment Corp (NYSE:TWO), around 0.44% of its 13F portfolio. Fir Tree is also relatively very bullish on the stock, earmarking 0.41 percent of its 13F equity portfolio to TWO.
Due to the fact that Two Harbors Investment Corp (NYSE:TWO) has faced a decline in interest from the smart money, it's easy to see that there is a sect of money managers that elected to cut their entire stakes heading into Q3. Interestingly, Stuart J. Zimmer's Zimmer Partners cut the biggest stake of the 750 funds watched by Insider Monkey, valued at an estimated $13.2 million in stock, and Israel Englander's Millennium Management was right behind this move, as the fund dumped about $11.4 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds heading into Q3.
Let's also examine hedge fund activity in other stocks similar to Two Harbors Investment Corp (NYSE:TWO). These stocks are Establishment Labs Holdings Inc. (NASDAQ:ESTA), PennyMac Mortgage Investment Trust (NYSE:PMT), B. Riley Financial, Inc. (NASDAQ:RILY), BancFirst Corporation (NASDAQ:BANF), Workhorse Group, Inc. (NASDAQ:WKHS), Bionano Genomics, Inc. (NASDAQ:BNGO), and Community Health Systems (NYSE:CYH). This group of stocks' market valuations are similar to TWO's market valuation.
As you can see these stocks had an average of 16.3 hedge funds with bullish positions and the average amount invested in these stocks was $132 million. That figure was $161 million in TWO's case. Community Health Systems (NYSE:CYH) is the most popular stock in this table. On the other hand BancFirst Corporation (NASDAQ:BANF) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Two Harbors Investment Corp (NYSE:TWO) is more popular among hedge funds. Our overall hedge fund sentiment score for TWO is 81.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Unfortunately TWO wasn't nearly as popular as these 5 stocks and hedge funds that were betting on TWO were disappointed as the stock returned -9.6% since the end of the second quarter (through 10/15) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Comment: COB data on this "Penny Stock" showed a upgrade to 7star [BUY] from 6star [neutral] with a 71 power rating. Report card grade is currently 55 [failing]. MktPrc early this morning was 6.70 [+0.04]. This particular security continues to be [considered] a long term play [going forward IMHO].... Disclosure: Some of us continue to hold a phase #2 position [6%-8% ... with a "at risk allocation"]
Live Long and Prosper....
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Post by richardsok on Oct 18, 2021 22:15:24 GMT
Bought approx 2% of PV in TWO several weeks ago. 2.4% gain so far. Nothing special, but not bad. Holding & watching. Technicals OK; seem to have decent support around 6.50 or better. TipRanks 7 out of 10. 10% div well covered so far. 2022 earnings projected also good, not spectacular. Collective analyses: neutral.
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Post by xray on Oct 18, 2021 22:22:55 GMT
richardsok, Appears we are starting to get the results of the last Qtr's coming our way. Some of us don't figure big changes because of a number of reasons [including market volatility that has always been a negative for "Penny Stocks"]... Live Long and Prosper....
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Post by xray on Oct 18, 2021 22:24:53 GMT
Business Wire Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Third Quarter 2021 Financial ResultsMon, October 18, 2021, 4:30 PM TWO +0.45% TWO-PA +0.04% TWO-PB -0.06% NEW YORK, October 18, 2021--(BUSINESS WIRE)--Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, announced today that it will release financial results for the quarter ended September 30, 2021 after market close on November 8, 2021. The company will host a conference call to review the financial results on November 9, 2021 at 9:00 a.m. ET. The conference call will be webcast live and accessible in the Investors section of the company’s website at www.twoharborsinvestment.com/investors. To participate in the teleconference, please call toll-free (877) 502-7185 approximately 10 minutes prior to the above start time. For those unable to attend, a telephone playback will be available beginning November 9, 2021 at 12:00 p.m. ET through November 23, 2021 at 12:00 p.m. ET. The playback can be accessed by calling (877) 660-6853 and providing the Conference Code 13723524. The call will also be archived on the company’s website in the News & Events section. Live Long and Prosper....
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