On June 21, 2019, I bought (got assigned) 100 shares of New Residential Investment Corp (NRZ ) at $16.00 per share. With its quarterly dividend payout of 0.5 dollars per share, this latest buy has a dividend yield of 12.5% (before tax) and will pay us an additional $50.00 (before tax) every quarter. Awesome!
NRZ has been in our dividend income portfolio since August 2018, when I originally bought 27 shares paying $18.47 per share. Latest Stock Buy: NRZ
Now as I told already, I bought/got assigned this stock after I made the following options trade #24 Put Sell: NRZ JUN 21'19 16 Put @0.32
There are three simple reasons I like this stock - it has a nice dividend yield of more than 10%, it has increased the dividend payout for the past 5 consecutive years. Last, but not least, on NRZ we can trade both put and call options. Also, NRZ has dividend payments in January, April, July, and October.
By now NRZ takes 16.38% from my US stock portfolio, and also is one of the biggest dividend payers in the portfolio by now.
For the rest of the year, I'm looking to get a dividend income of $85 from this purchase, which is about 4.15% from my $2,045 goal for 2019.
In total NRZ now contributes about $254.00 yearly to our dividend income portfolio.
About New Residential Investment Corp. (NYSE: NRZ)
New Residential Investment Corp. (NYSE: NRZ) is a publicly traded real estate investment trust (“REIT”) that focuses on investing in, and actively managing, investments primarily related to residential real estate.
We aim to drive strong risk-adjusted returns primarily through investments in (i) Excess Mortgage Servicing Rights ("MSRs"), (ii) Servicer Advances, (iii) non-Agency residential mortgage backed securities ("RMBS") and associated call rights.
Our objective is to leverage our proven investment expertise to deliver attractive returns that will help drive strong and growing dividends to our shareholders. We target assets that generate stable long term cash flows and employ conservative capital structures to generate returns throughout different interest rate environments.
Over the last few decades the complexity of the market for residential mortgage loans in the U.S. has dramatically increased. We believe that unfolding developments in the approximately $21 trillion U.S. residential housing market are generating significant investment opportunities. For example, in the aftermath of the U.S. financial crisis, the residential mortgage industry is undergoing major structural changes that are transforming the way mortgages are originated, owned and serviced. These changes are creating a compelling set of investment opportunities. We believe that New Residential is one of only a select number of market participants that have the combination of capital, industry experience and key business relationships we think are necessary to take advantage of this opportunity.