Dividend Capture with TWO 7.6% in 60 trading days

Real Estate REITs are often touted as having excellent annual dividend returns. However, from my observation better gains can be had from timing the fluctuations caused by these companies paying out a large amount of their income. Search my trades on CPLP and AGNC for similar plays on high dividend stocks.

Why wait for a whole year to get a 14% return, when you can get nearly half that in only 8 weeks? This Two Harbours (TWO) trade had  a trading gain of 3.8% plus a quarterly dividend of nearly 4%, bringing the total profit to 7.6% in 60 trading days.

This  play worked out reasonably, although if I had waited another couple of weeks the return would have been higher as it kept climbing.

Notice in the chart below I timed the sell based on the RSI-7 (bottom chart on the graph) hitting 90. This is a sure sign of a short term pullback in the price. You can see the sharp pullback in the three days after it bounced off the 90 line.