New Residential Investment (NRZ) Passes Through 11% Yield Mark

May 7 2014, 3:46pm CDT | by

Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of New Residential Investment Corp (NYSE: NRZ) were yielding above the 11% mark based on its quarterly dividend (annualized to $0.70), with the stock changing hands as low as $6.31 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 11% would appear considerably attractive if that yield is sustainable. New Residential Investment Corp (NYSE: NRZ) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of New Residential Investment Corp, looking at the history chart for NRZ below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 11% annual yield.

Click here to find out which 9 other dividend stocks just recently went on sale, at DividendChannel.com »


Special Offer: Add income and energy exposure to your portfolio with a 30 day free trial to Frank Bifulco’s Oil & Gas Income Portfolio

According to the ETF Finder at ETFChannel.com, NRZ makes up 3.51% of the Mortgage REIT Income ETF (AMEX: MORT) which is trading higher by about 0.7% on the day Wednesday.

/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Russian rocket with space freighter launched
Moscow, Oct 29 (IANS/TASS) Russia launched Soyuz-2.1a rocket with space freighter Progress M-25M from Baikonur space centre Wednesday, Russian space agency Roscosmos told TASS.
 
 
How body clock governs female fertility
London, Oct 29 (IANS) Treating infertility in women may soon have a new approach as researchers have now identified the biological clock that governs female fertility.
 
 
Add spices and herbs in food for super health
Washington, Oct 29 (IANS) Spices and herbs not only offer a zingy flavour to your food, they can also improve your health by helping to reduce sodium, calorie and fat intake, finds research.
 
 
High milk intake may lead to early death: Study
London, Oct 29 (IANS) Instead of strengthening your bones, drinking more than three glasses of milk a day may increase the risk of early death, a study has found.
 
 
 

Latest from the Network

Chloe Grace Moretz: I'm a geek
Chloe Grace Moretz is a ''geek'' when she's at home. The 17-year-old actress - who can be seen playing a prostitute alongside Denzel Washington in new action thriller film 'The Equalizer' - insists she lives a pretty...
Read more on Celebrity Balla
 
High powered MRI scans identify language centres in brain
Vienna, Oct 29 (IANS) A study from the Medical University of Vienna found how 7-Tesla ultra high-field magnetic resonance imaging (MRI) could be used to clearly show the brain areas responsible for speech processing...
Read more on Business Balla
 
Timothy Spall sees 'certain parallels' with William Turner
Timothy Spall sees ''certain parallels'' between himself and William Turner. Spall, 57, plays the influential painter in his new film 'Mr. Turner', for which he won the Best Actor award at the Cannes Film Festival, and...
Read more on Movie Balla
 
Trinidad cricket board condemns Windies players pull out
Port-of-Spain, Oct 29 (IANS/CMC) The Trinidad and Tobago Cricket Board (TTCB) has condemned the recent decision by the West Indies cricketers to abort their tour of India. The condemnation came in the form of a motion...
Read more on Sport Balla
 
Binge drinking hampers memory in long run
Washington, Oct 29 (IANS) High doses of alcohol during adolescence may continue to affect the brain even after drinking stops, leading to structural changes in the brain and memory deficits, says a significant study....
Read more on Celebrity Balla
 
EU: inspiring innovation through 3D-printed robot
Brussels, Oct 29 (IANS) The European Union (EU) said that it has a 3D-printed robot ready to be introduced in schools to cultivate the creativity of students studying mechanics, computer sciences, electronics and 3D...
Read more on Politics Balla
 
'Confident West Indies will appear in 2015 World Cup'
Sydney, Oct 29 (IANS/CMC) John Harden, 2015 Cricket World Cup chief executive, has said he is confident that the former champions West Indies will appear at next year's event in Australia and New Zealand. Harden...
Read more on Sport Balla
 
NASA cargo spacecraft explodes minutes after launch
Washington, Oct 29 (IANS) In a shocking incident, an unmanned commercial rocket carrying crucial scientific cargo for the International Space Station (ISS) exploded moments after lift-off Tuesday evening. Orbital...
Read more on Politics Balla
 
Sleep disturbances linked to higher Alzheimer's risk in men
London, Oct 29 (IANS) Elderly men with self-reported sleep disturbances run a higher risk of developing Alzheimer's disease than men without self-reported sleep disturbances, says a study. "We demonstrate that men...
Read more on Business Balla
 
Champ Bailey Retires From the NFL
Former Denver Broncos cornerback Champ Bailey retired from the NFL on Oct. 28.Bailey ends his career as one of the top shutdown cornerbacks in league history, per Ben Swanson of the Broncos' official website:"Longtime...
Read more on Sport Balla