The number of publicly-traded U.S. companies announcing that they would be acting to cut their dividend payments remained in recessionary territory December 2013.
As in November 2013, it appears the economic distress is once again concentrated in the real estate sector of the U.S. economy, with Real Estate Investment Trusts (REITs) bearing the brunt of the negative actions. Amanda Alix of the Motley Fool describes the sentiment for investors in that industry:
Massive Dividend Cut Sparks Panic Among Mortgage REITs
Just when it looked like mortgage REITs were moderating, disaster struck. Anworth Mortgage (NYSE: ANH) announced a reduction in its quarterly dividend last Friday, and it was a doozy: a mere $0.08 per share, a 33% drop from the previous payout of $0.12.
Reaction was swift, and Monday saw decimation in the sector. Anworth fell by more than 0.70%, while agency peers Annaly Capital (NYSE: NLY) dropped 1.21%, Armour Residential (NYSE: ARR) lost 1.34%, and American Capital Agency (NASDAQ: AGNC) took the biggest hit, suffering a decrease of 2.70%.
Political Calculations is a site that develops, applies and presents both established and cutting edge theory to the topics of investing, business and economics.
Be the first to read Political Calculation's column. Sign up today and receive Townhall.com delivered each morning to your inbox.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for August 27th, 2014 | John Ransom
In Other News: Warren Buffet's Secretary Unavailable for Comment on Burger King Tax Move | Michael Schaus
In Other News: Rare Sighting of the Elusive President Obama in His Natural Habitat, the Golf Course | Michael Schaus
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for August 25th, 2014 | John Ransom
In Other News: Law "Enforcer" Eric Holder Understands People's Mistrust of Law Enforcement | Michael Schaus
In Other News: Good News for Mexican Drug Cartels Seeking Some Slightly Used DOJ Hard Drives | Michael Schaus