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Capstead Mortgage Corporation Declares Dividends on Its Preferred Stocks

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  Published in Business and Finance on Thursday, June 3rd 2010 at 17:40 GMT by Market Wire
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DALLAS--([ BUSINESS WIRE ])--The Board of Directors of Capstead Mortgage Corporation (NYSE: CMO) announced today that it will pay the regular quarterly dividend of $0.40 per share on the $1.60 Cumulative Preferred Stock, Series A (NYSE: CMOPRA), and the regular monthly dividend of $0.105 per share on the $1.26 Cumulative Convertible Preferred Stock, Series B (NYSE: CMOPRB). The dividends are payable on June 30, to stockholders of record as of June 18, 2010.

Holders of the Series A and Series B preferred shares may convert into shares of the Company's common stock at any time. Each Series A Preferred share is currently convertible into 1.6467 shares of common stock. Each Series B Preferred share is currently convertible into 0.6362 shares of common stock. Holders of the Series A and Series B preferred shares are advised to carefully consider whether it is economically advantageous to convert into common shares, considering the conversion ratio relative to the prevailing market prices and dividends of both the common and preferred shares.

Any conversion requested after one or more preferred record dates within the quarter and on or before the record date for the quarterly common stock dividend will require payment to the Company of all preferred share dividends declared and paid for the corresponding quarter.

Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capsteada™s core investment strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage 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 securities carry an implied AAA credit rating with limited, if any, credit risk.