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Is Annaly Capital Stock a Millionaire Maker?
The Motley Fool· 2025-07-12 20:05
Core Viewpoint - Annaly Capital Management offers a high dividend yield of over 14%, but its business model and volatility in dividends and stock price suggest it may not be suitable for traditional dividend investors [1][8][12]. Business Model - Annaly Capital operates as a real estate investment trust (REIT) that does not purchase physical properties but instead buys mortgages pooled into bond-like securities, which is a complex model not easily replicated by small investors [2][4]. - The company aims to profit from the difference between the interest earned on mortgage securities and its operational costs, including leverage costs, indicating a higher risk profile [4]. Market Dynamics - Mortgage securities traded by Annaly are subject to rapid value changes influenced by interest rates, housing market conditions, and mortgage repayment rates, making it challenging for most investors to monitor [5]. - The volatility in both the stock price and dividends has been significant, with the annual dividend showing a downward trend until its recent increase [8]. Investment Suitability - Mortgage REITs like Annaly are better suited for active and aggressive investors rather than traditional dividend investors, as the focus is on total return rather than consistent dividend income [6][12]. - While Annaly's total return has historically kept pace with the S&P 500, it does not provide a reliable income stream, which is a primary goal for many long-term dividend investors [11][12]. Portfolio Considerations - For investors focused on total return and diversification across asset classes, Annaly may be a suitable addition to their portfolio, provided they understand the importance of reinvesting dividends to achieve total return goals [11][13].
FFC: There Is No Compelling Reason To Buy This Fund Over Other Preferred CEFs
Seeking Alpha· 2025-07-12 08:43
Group 1 - The Flaherty & Crumrine Preferred Securities Income Fund (FFC) is a closed-end fund that is popular among investors seeking high income from their assets [1] - The fund aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing principal loss risk [1] - A two-week free trial is currently being offered for the service, providing access to exclusive research and investment ideas [1]
Intrigued by AGNC Investment's Monster Monthly Dividend? Consider This Passive Income Machine Instead.
The Motley Fool· 2025-07-12 08:16
Core Viewpoint - AGNC Investment offers a high monthly dividend yield exceeding 15%, significantly higher than the S&P 500, but has not increased its dividend in over 15 years and has cut it several times, making it less ideal for passive income seekers [1][13] Group 1: AGNC Investment - AGNC Investment focuses solely on mortgage-backed securities (MBS) that are protected from credit risk by government agencies, resulting in low returns [5] - The company enhances its returns by investing in MBS on a leveraged basis, which increases its risk profile [5] - Since its IPO in mid-2008, AGNC has cut its dividend several times, leading to a 50% loss in stock value since its IPO, despite a total return of over 10% annually [9][11] Group 2: Main Street Capital - Main Street Capital is a business development company (BDC) that provides capital solutions to lower middle market companies and has a higher risk profile but offers much higher returns, with a weighted average effective yield of 12.7% [6] - The company has never cut its monthly dividend since its IPO in 2007 and has increased its payout by 132% over the years, also providing supplemental dividends since 2013 [8] - Main Street Capital's stock price has increased nearly 10% annually, contributing to higher total returns compared to AGNC [11][12] Group 3: Comparison and Investment Considerations - While AGNC offers a substantial monthly dividend, its lack of growth in payouts and potential for future cuts may lead to lower long-term total returns [13] - In contrast, Main Street Capital provides an attractive and growing monthly dividend, supplemented by quarterly payouts, making it a potentially better long-term option for passive income [14]
FFC: Checking-In On One Of Our CEF Holdings (Rating Downgrade)
Seeking Alpha· 2025-07-12 03:59
Group 1 - The Flaherty & Crumrine Preferred Securities Income Fund (NYSE: FFC) is a fixed-income closed-end fund (CEF) that leverages preferred equities [1] - Binary Tree Analytics (BTA) specializes in providing transparency and analytics for capital markets instruments, focusing on CEFs, ETFs, and Special Situations [1] - BTA aims to deliver high annualized returns with a low volatility profile, backed by over 20 years of investment experience [1]
MicroCloud Hologram Inc. Announces It Has Purchased Up to $200 Million in Bitcoin and Cryptocurrency-Related Securities Derivatives, with a Current Cumulative Investment Income of $34.02 Million
Globenewswire· 2025-07-11 12:15
SHENZHEN, China, July 11, 2025 (GLOBE NEWSWIRE) -- MicroCloud Hologram Inc. (NASDAQ: HOLO), (“HOLO” or the "Company"), a technology service provider, they announced that they have purchased up to $200 million in Bitcoin and cryptocurrency-related securities derivatives. As of July 11, the cumulative investment income have reached $34.02 million. HOLO currently holds $394 million in cash reserves. The company plans to allocate these $394 million reserves toward derivatives and technology development in cutti ...
WISDOMTREE MULTI ASSET ISSUER PUBLIC LIMITED COMPANY (a public company incorporated with limited liability in Ireland) WISDOMTREE Brent Crude Oil 3X Daily Short SECURITIES ISIN: IE00BLRPRK35
Globenewswire· 2025-07-11 11:47
Core Viewpoint - The WisdomTree Multi Asset Issuer Public Limited Company is proposing an amendment to the principal amount of its WisdomTree Brent Crude Oil 3X Daily Short Securities due to a significant decline in their value, necessitating a reduction from USD 0.114 to USD 0.0114 [4]. Group 1: Meeting Details - The original meeting scheduled for July 11, 2025, was adjourned due to a lack of quorum and will be reconvened on August 1, 2025 [3]. - The adjourned meeting will take place at the offices of Apex IFS Limited in Dublin, Ireland [3]. Group 2: Proposal and Voting Instructions - The purpose of the adjourned meeting is to consider amendments to the documentation required for the proposed reduction in the principal amount of the affected securities [4]. - Holders of the affected securities must submit new voting instructions for the adjourned meeting, as previous instructions from the original meeting will not be valid [5]. - It is advised that holders check with their intermediaries regarding deadlines for submitting instructions to participate in the adjourned meeting [6][7]. Group 3: Trustee's Position - The Law Debenture Trust Corporation p.l.c., as trustee, has no objection to the proposal's presentation but does not express an opinion on its merits [8]. Group 4: Notification of Outcome - Holders of the affected securities will be informed of the outcome of the adjourned meeting shortly after it concludes [9].
Orchid Projects Loss for Q2: Is RMBS Strategy Backfiring?
ZACKS· 2025-07-10 18:51
Core Insights - Orchid Island Capital, Inc. (ORC) estimates a net loss of 29 cents per share for Q2 2025, primarily due to losses on residential mortgage-backed securities (RMBS) and derivative instruments [1][9] - The estimated book value per share is $7.21, reflecting a 15.9% year-over-year decline, with a negative total return on equity of 4.7% as of June 30, 2025 [2][9] Financial Performance - As of June 30, 2025, Orchid's RMBS portfolio value is estimated at $6.9 million, indicating a challenging quarter due to net realized and unrealized losses [3][9] - Over the past three months, ORC shares have increased by 18.6%, outperforming the industry growth of 14% [7] Competitive Landscape - AGNC Investment focuses on leveraged investments in Agency RMBS, with a portfolio value of $70.5 billion as of March 31, 2025, and a tangible net book value of $8.25 per share [5] - Annaly Capital Management primarily invests in Agency mortgage-backed securities, holding $75 billion in Agency MBS as of March 31, 2025, with a book value per share of $19.02 [6] Valuation Metrics - Orchid trades at a forward price-to-tangible (P/TB) ratio of 1.03X, which is above the industry average of 1X [10] - The Zacks Consensus Estimate for ORC's earnings in 2025 and 2026 suggests significant year-over-year increases of 394.4% and 24.5%, respectively [13]
AVK: Leverage Needs To Be Reduced To Increase Appeal
Seeking Alpha· 2025-07-10 12:50
Advent Convertible & Income Fund (NYSE: AVK ) aims to provide investors with attractive returns through its portfolio of convertible and high-yield securities. A fund like AVK can be great for investors who want to collect a steadyFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offe ...
AGNC Investment Corp. Declares Monthly Common Stock Dividend of $0.12 per Common Share for July 2025
Prnewswire· 2025-07-09 20:01
BETHESDA, Md., July 9, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for July 2025. The dividend is payable on August 11, 2025 to common stockholders of record as of July 31, 2025.For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].ABOUT AGNC INVESTMENT CORP.Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investo ...
Vanguard, BlackRock deliver second-half market plays that could cushion a potential growth slowdown
CNBC· 2025-07-09 11:30
Group 1 - Investors should prepare for weaker stock market performance in the next six months according to Vanguard's outlook [1] - Vanguard's global head of rates, Roger Hallam, anticipates a slowdown in growth during the second half of the year [1] - The labor market is expected to gradually cool while inflation rises, leading to potential interest rate cuts by the Federal Reserve [2] Group 2 - Hallam believes that prioritizing jobs will prompt the Federal Reserve to cut interest rates towards the end of the year [2] - This environment is expected to create a favorable condition for bonds, encouraging clients to allocate more to fixed income [2] - Vanguard is launching three U.S. government bond exchange-traded funds, including the Vanguard Government Securities Active ETF (VGVT) [2]