My $15.80 purchase of NLY settles on 10/14/2011 and executed at 1:13 PM 10/11/2011. This takes my total target allocation of NLY to 3/4.
Back in March of this year, Uncle Gary asked, “Which REIT Should I Buy? CIM or NLY” I chose NLY for these reasons:
1. NLY is a large fund with a longer track record.
2. CIM has a very short 4 year track record.
3. NLY was rated ‘Most-Watched” REIT from Motley Fool.
4. NLY is not as exposed to the Consumer as CIM and the higher market cap is also seen as a plus.
5. Although the PEG for NLY is over 1, it has a low PE of 9.
6. NLY has a safer dividend.
7. NLY is less subject to Institutional Selling and has a broader base of ownership. Extra safety.
Today you can add lower stock price, I paid $17.80 back in March, so I paid $2.00 less for this high dividend paying REIT. I also added shares in on September 9, 2011 at $17.14.
NLY pays a quarterly dividend of 60 cents, yielding over 15%.
Jim Cramer said last night on the lightening round, “Now that is not tough to recommend. It has a nice yield. The stock has come in. NLY is for real.”
Vatalyst says, “This is a good stock for income seeking investors to buy. Its business is primarily conducted in government backed mortgage securities. Dividend yield should remain at around 16%, though the absolute dividend may decrease slightly if interest spreads come under pressure. The dividend yield should remain around 16%, and capital should remain strong. For investors looking for strong dividends from a diversified REIT, NLY [is the way to go].
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