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EnigmaDude (98.06)

New American Capital - the Dividend Investors Dream Stock

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May 16, 2008 – Comments (5) | RELATED TICKERS: ACAS

There is an excellent discussion about hedging your bets with ACAS in this article from Seeking Alpha.

There is yet another one today that included an analysis of their dividends.  The bottom line is this:

"ACAS is every dividend investors dream stock with its above average dividend yield and dividend growth rate."

I hope they are both correct in their analysis as a portion of my retirement portfolio is counting on it!

And now there is a new opportunity with today's IPO:

American Capital Agency Corp (AGNC)

The Company plans to use all of the net proceeds of the initial public offering to invest in single-family residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity, or agency securities. (sweet)

Does this sound like a smart move? Guess we'll find out...

Fool On.

5 Comments – Post Your Own

#1) On May 16, 2008 at 6:07 PM, DemonDoug (98.96) wrote:

sounds like dating a chick in her late 20's who used to be a supermodel and who claims she just got over HPV and herpes.  she might make you happy, but make sure you're protected, cuz otherwise your portfolio might get really sick!  And then you'll sour on her and dump her like a bad newspaper.

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#2) On May 16, 2008 at 6:16 PM, EnigmaDude (98.06) wrote:

DD - are you referring to the IPO, or to ACAS (or both)?

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#3) On May 16, 2008 at 6:22 PM, DemonDoug (98.96) wrote:

ACAS is what I was referring to.

AGNC is more like the guy who is drunk and shows up to the party at 5:30 am when the sun is rising and the party has been over for 2 hours. 

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#4) On May 16, 2008 at 9:05 PM, firefighterEMT33 (22.38) wrote:

Enigma--

Good call on ACAS. You mentioned it to me in my blog on CSE and some others. I've done research over the past couple days and this one looks pretty sweet. Barring any major catastrophes they should be ok for quite some time while awaiting a market rebound. I'm hoping it doesn't come too quickly though, I'd like to accumulate shares over an extensive period of time and get a substantial position, the DRIP should help.

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#5) On May 17, 2008 at 4:04 PM, EnigmaDude (98.06) wrote:

Doug - you really are hilarious!  I don't agree but I love your analogies - you must have been a Frat boy. (btw - what makes a newspaper go "bad"?)

FireDude - thanks, but I have to admit that my FA hooked me up with ACAS, although I'm looking forward to getting used by the skanky bit*h. Like my daughter's riding instructor (1982 Playmate of the Year) she might get old after 10 or 20 years, but she can still ride!

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