In sum, this special dividend provides investors with a hefty yield from a stock that already yields more than 10 percent. Individuals may wish to initiate long positions in Two Harbors Investment Corp (NYSE:TWO) even though they will miss the stock distribution because the distribution could make Two Harbors a stronger company. Those who expect Silver Bay Realty Trust Corp (NYSE:SBY) to become profitable and increase its dividend over time may want to enter now while many Two Harbors investors will be selling off their new shares in Silver Bay. In any event, this deal offers plenty of opportunity for enterprising investors.
Mike Thiessen has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.