Growing the love for investing
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
When you go to the well and there's not enough water for you and your horse then you should probably avoid that well n the future. Hoping someone hydrofracked it between visits or put a longer rope on the bucket since your last visit can leave you dry. I'm back after Invesco Mortgage Captital anyway after booking my negative points from steep three month selloff after investors determined that the risk reward in the hybrid REIT's was a bit more than they wanted to chase, even with a 20% dividend. Buyers are coming back and if I'd been paying attention I would have closed my loser when it hit $13 and then made this play. It's hard to close a pick here on CAPS when it's in the red. Ego, admitting you were wrong, and the all important accuracy hit in the game itself tends to guide you into holding.
A successful play on dividends on CAPS however, requires a little more luck and anaylsis than one might think. The "dividend play" has to hold it's share price better in a down market than other equities, it has to have some appreciation, though not S&P market beating in an up market, and the dividend reinvestment has to make up the difference to work you into the green over 3-4 quarters of patient dividend reinvestment. Invesco has a chance of being one of those, but fear is not gone on hybrid REIT's. They could be dominos waiting for a catalyst to fall hard. The spread of interst rates could change, borrowers could default, the governement could stop backing the FHA portions, etc.
I think Invesco has a chance of being a long term winner on CAPS, but it isn't the best play if you're looking for an REIT for Real Life stable dividends. I broke in at $15 but we could go lower again. I'm looking to book the December dividend and see how the S&P and the REIT fears are progressing. If I can get a few quarters of dividend reinvestment in....if Invesco can hold their dividend near this level....if the sky doesn't fall...if...if...if....then I'll be able to hold this one for a long term caps play....pretty iffy and that rope could still be too short to get any water out of the well......