For those of you that maybe don't keep up on day to day news etc.... Annaly Capital Management (NLY) which we've discussed here many times -- CUT it's dividend to .50 from .55 this quarter.
They adjust their dividend payout based on the quarters profitability. Unlike most companies that just pay a straight dividend - NLY pays a percentage of earnings out. Obviously if they don't earn as much - they pay out less. It's STILL a 11.6% dividend at todays price.
I'm holding 35,000 shares of this name.... but like junk bonds and high yield bonds (JNK and HYG) I keep a VERY CLOSE EYE on these holdings. Their totally interest rate plays and they play the "spread" which when it goes flat or inverted - you get KILLED. I use these to park cash - and to raise my overall yield. PLEASE do not buy and hold these names in an account you pay no attention to! The yield is great - but the slope is steep and fast!
