DALLAS--(BUSINESS WIRE)--Capstead Mortgage Corporation (NYSE: CMO - News) announced today that it will pay a third quarter 2008 dividend of $0.55 per common share payable on October 20, 2008 to stockholders of record as of September 30, 2008.Commenting on the current dividend and market conditions, Andrew F. Jacobs, President and Chief Executive Officer said, “We are pleased to report a common dividend of $0.55 per share for the third quarter. Conditions in the credit markets have remained relatively stable throughout this quarter with ample financing available via repurchase arrangements to support our conservatively leveraged portfolio of short-duration agency-guaranteed mortgage pass-through securities. The recent government actions to support the housing markets by placing Fannie Mae and Freddie Mac into conservatorship and announcing plans to further bolster market conditions for investors in the agency-guaranteed residential mortgage pass-through securities are encouraging. We intend to continue to execute our core investment strategy of conservatively managing a leveraged portfolio of agency-guaranteed residential adjustable-rate mortgage (“ARM”) securities that can produce attractive risk-adjusted returns over the long term while reducing but not eliminating sensitivity to changes in interest rates.”
About Capstead
Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed residential mortgage pass-through securities carry an implied AAA credit rating with limited, if any, credit risk. Capstead may also augment its core portfolio with investments in credit-sensitive commercial real estate-related assets.
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