Dallas, Texas 10/11/2013 (Financialstrend) – CYS Investments Inc (NYSE:CYS) is part of the real estate investment trust segment which seems to have been the most impacted by the “No taper decision” of Fed in mid September. Across the board most of the REIT had convinced themselves that the low interest regime in place to counter the after effects of the financial slow down of 2008 was on its way out. They expected Fed to reduce its stimulus package which would in turn eat into the high returns the REIT were able to post over the past 2 to 3 years. This fear induced the investment firms to reduce their dividend payout obligations to balance the potential lowering of profits.
CYS has paid out dividend of $1.36 per share over the past 12 months trailing period. This translates to a 16.77% forward yield for the same period. Investors who bought into the shares of this REIT, assuming they would be able to benefit from these healthy dividend payouts are a disappointed lot today.
The stock which has a market cap of $1.41 billion has close to 173 million outstanding shares. If the company hopes to continue this healthy dividend payout track record, it will have to sustain further loss in addition to $221 million accumulated loss the company has posted over the past 12 months.
The shares of this stock are trading at $8.11 per share as of 3:00 PM ET on October 10. This translates to a 31% dip from its 52 week high valuation and a 25% uptake on its 52 week low pricing. The REIT stock has been under pressure over the past 90 days. It has lost close to 3.22% over the last quarter which has spilled into last week’s trading leading to a 1.93% dip in its stock value. Investors in the stock will be hoping that the good days of hefty dividend payouts soon return to this REIT stock.