CSE recently elected to operate as a REIT, so the dividend is not qualified, assuming you mean the way it is treated for tax purposes
i'd say CSE's stock price is currently being affected by the overall interest rate environment, and the overhang of the recent secondary offering...longer term i think the price will rise as they show they can grow as the estimates are predicting...of course, if they fail to do so, the price will reflect that as well
i would think that the end of the interest rate increases would have a more favorable effect on banks than on companies like CSE, since the yield curve probably has more of an effect on the banks...it is my perception that companies like CSE can pick and choose the investments they want to make, and thus build in the return on investment they seek, whereas banks are in a much more competitive environment, and must respond to their competitors as they try to deploy their much larger amounts of capital
i own NYB and WM as well, and have owned C at times...in most cases i play these stocks for the dividends and covered call premiums, whereas in a company like CSE, i figure that assuming they execute, they will in time receive a multiple more commensurate with their growth rate |
