Capstead Mortgage Increases Dividend To 56 Cents
DALLAS (AP) ¿ Capstead Mortgage Corp. said Thursday it will pay a first quarter dividend of 56 cents per share on April 20 to shareholders of record as of March 31.
The company paid 36 cents in the fourth quarter, the smallest dividend of 2008, after lowering it from 55 cents paid in earlier quarters.
The company said government actions to support the market for agency-guaranteed residential mortgage securities have helped create greater demand and higher prices for securities the company holds. That improved the book value and availability of financing, Chief Executive Andrew F. Jacobs said in a statement.
"We are confident our core investment strategy of managing a conservatively leveraged portfolio of agency-guaranteed residential adjustable-rate mortgage securities can produce attractive risk-adjusted returns over the long term while reducing, but not eliminating, sensitivity to changes in interest rates," he said.Interest rates on short-term borrowings have declined considerably since the first of the year, resulting in a pronounced expansion in financing spreads and net interest margins, he said. Shares of Dallas-based Capstead rose 6.3 percent, or 64 cents to close at $10.77.
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