Monday, September 29, 2014
Recent Dividend Announcements
I had 2 announcements come my way last week for stocks in my taxed portfolio. The first was from AGNC - American capital Agency Corp announcing the quarterly dividend will be remaining at $.65/share. The second was by Windstream Holdings. They also maintained their dividend of $.25/share.
AGNC is a real estate investment trust investing primarily in agency mortgage-backed securities. Because it is a REIT it is paying a high yield of 11.77%. It has been maintaining this since the cut in September of 2013. It has only been cutting the dividend so I do not see good things in the future. I bought this in my early days of investing and was only chasing yield at the time. Needless to say it has grown at all for me and the stock price has remained the same. I only have a few shares so I will reevaluate this if the dividend ever gets cut.
Windstream Holdings (WIN) is my largest position in my taxed portfolio. It's current yield (8.9%)is a little bit lower than AGNC but still pretty high (especially since it is not a REIT or MLP). This should have been a warning as well but like AGNC I bought into it when I was not knowledgeable on dividend investing. I have written about Windstream before so read that for more information I have gathered on them. They have been sitting at $.25/share since 2006 and their stock has improved recently. Some of it from there split announcement and some because the utility industry has performed well this year. This one I am watching closes and will be reevaluating during my yearly checkup as my portfolio is to heavily weighted on this guy.
Full Disclosure: Long on AGNC and WIN.