This is dividend week. Remember that a great dividend could be wiped out rapidly if the stock does not hold it's value. Also very important to mention is the fact that when a stock issue it's dividend, the value will be adjusted to reflect the dividend issued. For example if AGNC is worth 32,00$ and this is the ex-dividend date, the value adjusted will be 30,55$ the day after (their quarterly dividend is 1,45$). Very important to remember that you MUST BE the owner of the stock to receive the dividend. So if the dividend date is the 15th you must have bought the stock 2-3 days before to ensure that the transaction is settled on the dividend date. This is why you will see the mention: Ex-dividend date: this is the last date where you can buy a stock and receive the dividend.
On the dividend play, AGNC is one of the most profitable and stable one in the REIT category.
To become and stay within the REIT area, AGNC must return to shareholders 90% of their gains and they are doing just fine.
The only problem with REITS is the fact that by remitting 90% of their profit, they cannot rely on house profit to increase share value but must constantly go out to the markets and issue more shares to finance themselve thus diluting their value.
When you will research REITS, be careful as there is 2 different main categories: the one where a good % of their loans are NOT guaranteed by any government agencies and the other category is fully insured limiting the losses. AGNC falls under the category where most of it's portfolio is USA insured.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
On the dividend play, AGNC is one of the most profitable and stable one in the REIT category.
To become and stay within the REIT area, AGNC must return to shareholders 90% of their gains and they are doing just fine.
The only problem with REITS is the fact that by remitting 90% of their profit, they cannot rely on house profit to increase share value but must constantly go out to the markets and issue more shares to finance themselve thus diluting their value.
When you will research REITS, be careful as there is 2 different main categories: the one where a good % of their loans are NOT guaranteed by any government agencies and the other category is fully insured limiting the losses. AGNC falls under the category where most of it's portfolio is USA insured.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
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