It was just a matter of time. In the back of my head, I knew I was going to have to dump Anworth Mortgage Asset Corp (ANH).
I had purchased this Mortgage REIT back in June of 2014 when I was first starting to divsersify into dividend earning stock. I had stars in my eyes...
ANH is one of the REITs that manages a leveraged portfolio of residential mortgage-back securities and loans. I should have stopped there.. but no.
The over 10% dividend rate was too tempting to avoid when you are a rookie and look to grow the portfolio. It was earning $0.15 per share and it was an easy $150 dollars every three months.
Things were ok until their growth stopped and began shrinking in 2017. In Q2 of 2018 they cut the dividend from 15 cents to 14. I did not sell. I still made over $140. Then in Q4 of 2018, they dropped to 13 cents. Then 11 cents in Q2 of this year. Now they announced a 10 cent dividend, a 9.1% cut.
This dividend cut resulted in a $45.48 cut in my annual dividend. NOT ACCEPTABLE. With the dividend increases this month from Verizon and Microsoft and others, I am still down $23.55.
|The dividend cut is making us unhappy|
This is a family site or I would spew out profanity like a drunken sailor... I am f'ing doing it in my mind..
Enough. I learned my lesson. These high yielding REITs will eventually bring grief the moment the economy begins hitting road bumps.
I knew that this was not a dividend grower. But I ceded to my financial hedonism. I bought this, NLY, and AGNC. Both NLY and AGNC cut their dividend over the past year and I cut my position of each by around 75%. I am so pissed.
Now with this cut, I am out. And since AGNC and NLY are never going to grow and most likely will cut their dividend, I am seriously considering selling all three and purchasing some shares that offer a more modest rate, but will grow. If I cut all three out of my life, I will be down $1,238 annually in dividends. Dividends that will never grow. And growth is the name of the game.
The growth stocks will have a lower rate, but at least I will be increasing the annual amount without these hits. I got some thinking to do
What's your take?
Any recommendations on buying at this moment?
Post a Comment
Please leave a comment. Just be respectful of each other. We're all here for the same reasons.... Thanks!