Capstead Mortgage Cuts Dividend Yet Again
Capstead Mortgage (CMO: 12.72 +0.55%) 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.