CYS Investments Inc (NYSE:CYS): Fed Announcement Boost the Stock


Dallas, Texas 09/19/2013 (Financialstrend) – A specialty finance company, CYS Investments Inc (NYSE:CYS)’s primarily investment focus remains on 15-year mortgages and residential mortgage pass-through securities. The prime objective of the company is generating consistent risk-adjusted investment income. Its investment portfolio primarily includes Agency residential mortgage-backed securities (RMBS) and adjustable-rate mortgage loans (ARMs). CYS Investments Inc (NYSE:CYS)’s market capitalization is around $1.4 billion.

After the announcement by Fed about its decision that it is not going to taper the $85 billion monthly bond purchase program and also the Bernanke’s dovish post-statement presser, all sorts of asset classes whether it is bonds or stocks or gold all are on the way of surging.

The struggling mortgage real estate investment trust sector is the biggest winner in this soaring scenario. This sector is soaring after the ten year treasury rate reduced severely, and also after expending much of the summer tanking as interest rates rose.

Looking at mortgage real estate investment trust sector bellwethers, CYS Investments Inc (NYSE:CYS) is the highest gainer as it is up by 5.45% and closed at $8.52 on September, 18 2013.

Further, CYS Investments Inc (NYSE:CYS) is going to trade ex-dividend. The company is going to pay $0.34 per share for its quarterly dividend which is payable on October 10, 2013. This dividend works out to almost 4.19% calculated with its current stock price of $8.52. So, if everything else being equal it is expected that the shares of the company will trade lower by 4.19% when it opens for trading on September, 20 2013.

Normally, it is not possible to predict the dividends, but after looking at the history of CYS Investments Inc (NYSE:CYS)’s dividend prior to the recent dividend of $0.34 declared by the company most recently there is a reasonable expectation that annual yield will go forward by 16.77%.