There’s no denying that Annaly Capital Management’s mREIT offers a tempting yield. However, investors should take a step back and look at history to see why relying on the current yield is problematic.
For the majority of the company’s public life, Annaly’s yield has remained around 10%. Dividend yields, on the other hand, aren’t fixed; they fluctuate with the stock price. And this is a major issue.
Because Annaly’s dividend has been cut and raised throughout time, its stock price has risen and decreased in such a way that the yield has remained consistent at roughly 10%, give or take.
The dividend and stock price have been on a declining trend since 2010. To be fair, Annaly isn’t the only one that does this. This type of dividend and share price volatility is virtually guaranteed by the traditional mortgage REIT business model.
Mortgage REITs, in essence, take on debt to acquire mortgages. The difference between the interest they earn and the interest they pay is their profit. They must adapt their holdings when market conditions change, and the dividends they can support must also fluctuate.
Annaly is, in fact, a well-managed mortgage REIT. Because of the inherent volatility in payouts and share prices, most dividend-focused investors would be better off avoiding typical mortgage REITs.
Is nly a good dividend stock?
High dividend yields are common among real estate investment trusts (REITs), and Annaly Capital Management (NYSE:NLY) is one such stock with a yield that appears high but is actually relatively safe and reasonable.
Is Agnc dividend safe?
According to Zacks’ exclusive data, Enterprise Products Partners L.P. is now rated a Zacks Rank 3 stock, and we predict the EPD shares to return in line with the market over the next several months. Enterprise Products Partners L.P. also has a B VGM Score (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Enterprise Products Partners L.P. may be undervalued, according to valuation criteria. It has an A Value Score, indicating that value investors should consider it. EPD’s financial health and growth prospects show that it has the ability to outperform the market. It has a B Growth Score right now. With a Momentum Score of F, recent price swings and earnings estimate revisions show that this is not a promising stock for momentum investors.
Is EPD a good stock to buy?
AGNC Investment is rated as a Hold by the majority of analysts. The average rating score for the company is 2.29, based on two buy ratings, five hold ratings, and no sell recommendations.
Is Agnc a buy or sell?
In order to complete the buy-in, UGI bought almost 69.2 million public common units of AmeriGas that it did not already possess.
UGI has completed the merger with AmeriGas Partners. rawpixel/Pixabay/Pixabay/Pixabay/Pixabay/Pixabay/Pixabay/Pix
The merger between UGI Corporation and AmeriGas Partners, which was announced on April 2, 2019, was completed successfully. In completing the buy-in of AmeriGas, the nation’s largest retail propane marketer, UGI purchased the approximately 69.2 million public common units of AmeriGas it did not already control.
“We are thrilled to announce the conclusion of this transaction, which fully consolidates our ownership of AmeriGas and offers a platform for future cash flow and profits development for UGI,” said John L. Walsh, president and chief executive officer of UGI. We will be able to build on our successful 60-year experience in propane distribution in the United States as a result of this deal. In addition, the combination provides a chance to better coordinate our LPG distribution operations in the United States and Europe, resulting in increased efficiencies and faster growth. Finally, I’d like to extend a warm welcome to AmeriGas unitholders at UGI. We’re excited to be outstanding stewards of your money.”
The acquisition was approved by AmeriGas unitholders at a special meeting earlier today, and the transaction has now closed. The merger deal was approved by roughly 93 percent of the AmeriGas common units represented in person or by proxy at the special meeting, and about 60 percent of the total number of AmeriGas common units outstanding. AmeriGas common units will no longer trade on the New York Stock Exchange after today’s market closes.
Does UGI own AmeriGas?
In completing the buy-in of AmeriGas, the nation’s largest retail propane marketer, UGI acquired the approximately 69.2 million public common units of AmeriGas it did not already own. AmeriGas’ common units will no longer trade on the New York Stock Exchange at the close of business today.
What happened to AmeriGas?
(Source: Reuters) UGI Corp announced on Tuesday that it would pay $2.44 billion in cash and shares for the remaining almost 75 percent of retail propane marketer AmeriGas Partners LP that it does not own.
Has AmeriGas been sold?
The Company is a holding company that operates as a propane retailer in the United States, distributing about one billion gallons of propane each year.
What is Apu with stock?
AmeriGas, the nation’s largest retail propane marketer, has sold 69.2 million public common units to UGI Corporation.
“We are thrilled to announce the conclusion of this transaction, which fully consolidates our ownership in AmeriGas and provides UGI with a platform for future cash flow and earnings development,” said John L. Walsh, UGI’s president and chief executive officer. “We will be able to build on our successful 60-year legacy in propane distribution in the United States as a result of this deal. In addition, the combination provides a chance to better coordinate our LPG distribution operations in the United States and Europe, resulting in increased efficiencies and faster growth. Finally, I’d like to extend a warm welcome to AmeriGas unitholders at UGI. We’re excited to be outstanding stewards of your money.”
The agreement was accepted by AmeriGas unitholders at a recent special meeting. At the special meeting, roughly 93 percent of AmeriGas common units represented in person or by proxy, and about 60 percent of the total number of AmeriGas common units outstanding, voted in support of the merger transaction.
UGI runs natural gas and electric utilities in Pennsylvania through subsidiaries, distributes LPG both domestically and internationally, maintains midstream energy assets in Pennsylvania, Ohio, and West Virginia, and owns and operates electric generation facilities in Pennsylvania.
What company owns AmeriGas?
Non-dividend distributions are typically treated as a return of capital, lowering the tax basis in a shareholder’s stock. Non-dividend distributions are recognized as capital gain income if a shareholder’s tax basis has been lowered to zero.
