Apollo Residential Mortgage Inc (NYSE:AMTG) shares trading down


Dallas, Texas 07/09/2013 (Financialstrend) – It has been evident that Dividends play a considerably important part for investors to make decisions as they hold a significant share in the stock market’s returns.

The shares of Apollo Residential Mortgage Inc (NYSE:AMTG) is currently trading at $14.85, down by 0.34%.

With reference to the quarterly dividend provided by the Apollo Residential Mortgage Inc (NYSE:AMTG), that turns out to be $2.80 per annum, the company’s stock yield was over 18%.. In its capacity as a prominent constituent of the Russel 3000 index , Apollo Residential Mortgage Inc (NYSE:AMTG) is considered to be one of the largest 3000 companies on the U.S. Stock market hence, a yield above 18% is way advantageous and favorable news for the investors. The yield was coupled with a downfall in stocks price of as much as a minimum of $14.40.

To be more precise, let’s assume, that we purchase shares of one of the Russel 3000 EFT (IWV) companies by the end of May, 2000 costing $78.27 per share (by then) with a decided dividend payable of $10.77 over the period of purchase. Later we realize that the prices of the shares have fallen by 0.6% to $77.79 in May, 2012. This decrease in stock price depicts that a loss of $0.48 has been earned per share, but consequently the dividends have increased the returns to 13.15%, similarly the dividends, if reinvested, would result in an annual return of 1.0%.

As a consequence, the dividends payable keep changing due to changes in the companies’ returns. This gives us a hint at one downside of this scenario for investors i.e. the yield of 18% will remain effective only in case the company manages to maintain its dividend payout at the rate of the most recent divided. In my opinion the stock is a good bet as the likelihood of maintaining its dividend payout is quite high considering its steeply slanting earnings graph and consistent payout trend in past.