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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78703  
Subject: Re: hcm Date: 1/8/2005 8:08 PM
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Author: comreal77 | Date: 1/8/05 6:06 PM | Number: 43947
this one looks as good as annaly has been for us--am i missing something here? thinking of buying some for the dividend retirement income

HCM is a Mortgage REIT, and most REIT investors stear clear of Mortgage REITs. These tend to act more like junk bonds than stocks. With interest rates on the rise, Mortgage REITs will almost certainly lose a lot in value. Right now it's price is close to a 52 week low which is why the dividend yield is so high. Who knows where the bottom price is on this one?

You might get better replies to your question by posting over on the 'Real Estate Inv. Trusts: REITs' board. http://boards.fool.com/Messages.asp?mid=21879093&bid=100061

With a current Dividend Yield of 11.5%, you can bet that there is something a little risky with this one. It probably has something to do with the fact that FFO earnings are $0.67 per share, and the dividend being paid out is $1.20 per share. That says something will have to give pretty soon (big dividend cut maybe??).

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