Deutsche Bank Reports 1Q Dividend In Line With Estimate On Hatteras

In a report published by Deutsche Bank, Hatteras HTS declared a 1Q dividend of $1.00 per share, which was in line with expectations and flat sequentially.

Deutsche Bank said that the dividend is payable on April 22 to stockholders of record as of March 18, with an ex-dividend date of March 16. “Given the 1Q dividend, we remain comfortable with our 1Q core earnings estimate of $1.07 per share, which is up sequentially from $0.99 per share. We expect the sequential core earnings increase to be a result of a larger portfolio given January's capital raise. Because Hatteras manages interest rate and prepayment risks, the primary risk is unexpected changes in interest rates, as an increase in short-term rates would increase funding costs while a fall in long-term rates would result in increased refinancing activity and premium amortization expenses.”

Hatteras closed yesterday at $30.83.