Capstead Mortgage Cuts Dividend Yet Again

Capstead Mortgage (CMO: 12.89 +0.31%) announced yesterday that the company is cutting their quarterly dividend by 28 percent to $.26 per share.

 

This marks the fifth consecutive quarter that Capstead Mortgage has cut their dividend. A year ago, the real estate investment trust (REIT) paid investors a quarterly dividend of $.56 per share. Now that dividend has been cut by nearly 54 percent.

 

Even with the dividend cut, CMO shares will still yield 8.8 percent based on yesterday’s closing price. However, investors have to be concerned about the stability of future dividend payments.

 

Investors sold off Capstead Mortgage shares today, sending the stock down 6.4 percent following the dividend cut. CMO shares have now fallen 19 percent since the beginning of the year.

 

The dividend will be payable on October 20, 2010 to stockholders of record as of September 30, 2010.

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There is one response to Capstead Mortgage Cuts Dividend Yet Again

  1. 15 Stocks That Can’t Stop Raising Their Dividends | Dividend Nation:
    November 15th, 2010 at 1:27 pm

    [...] their dividends, but so far this year only 3 have cut their dividend. While there are a few stocks like Capstead Mortgage that can’t seem to stop cutting their dividends, here are 15 stocks that can’t stop [...]

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