RE:Getting Interesting
Compypaul wrote: Except for Pandemic dip in 2020, this is the lowest this stock has been in 10 years. Yield is approaching 12%, but I don't believe there's been any material change to company operations. People are still buying and selling houses. Any thoughts?
The whole sector is getting crunched, FC, MKP, TF, AI, FN...
I would say the major reason is Stagnate dividend, MKP and FN grow thiers over time and they are hurting the least where as the others as you pointed out are near or below pandemic lows. Adding on to that why add a stagnate dividend company when better growth dividend/shareprice companies are on sale at similar or better deals...
If you need the income, sure lock in the 12% payout and wait for the 50-80% rebound...
or...
Look at ARE who's dividend is at 8% and has increased the per share payout every year since 2012 and has a payout 3.5X what they paid out per quarter in 2011 pre-start of steady increases... oh and like expect a 80-130% shareprice rebound in 6-9 months
CNR has 19 years of payout growth averaging nearly 12% per year the last 5, and has one of the top growth histories in the TSX, looking for a 20-25% rebound + anouther 5-20% year over year going forward...
There are many other similar stories all over the TSX... I love this mortgage finance sector and as attractive as it looks currently, unless your looking at MKP who before the latest dip tipped thier hand that they may have a special dividend to pay out early next year or FN who seems to grow both sides, you can do better for yourself elsewhere... This is a good place to hunt for deals when the market doesn't offer other good growth prospects...
(I own 1060 shares of BRE, 400 of FC, 1668 of MKP, 3000 ARE, 100 CNR in full disclosure of stocks I've mentioned here)