Business & Finance
Business and Finance
Business and Finance
Fri, February 25, 2011 Current Economic Conditions Favor Chimera & MFA Financial
NEW YORK, NY--(Marketwire - February 25, 2011) - With the markets showing signs of volatility this week, investors are once again looking for safe havens. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. REITs' ability to generate this significant capital appreciation is one of the industry's main allures, as most investors flock to REITs for their hefty dividends and stability. In fact, most of the success of the industry in the last year can be attributed to low interest rates. When interest rates get this low the return on dividends can far exceed that of bonds. The Bedford Report examines the outlook for diversified REITs and provides research reports on Chimera Investment Corporation (
[ www.bedfordreport.com/2011-02-CIM ]
[ www.bedfordreport.com/2011-02-MFA ]
Companies such as Chimera earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. To be classified as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. While this makes paying its dividend more volatile, given the current economic conditions, REITs continue to be appealing. Federal Reserve Chairman Ben Bernanke says that he is prepared to keep rates in the range of 0 - 0.25 percent for an extended period if the unemployment numbers don't drop significantly.
The Bedford Report releases regular market updates on REITs so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.
Solid profits for a REIT keep those dividend payments stable. Presently, Chimera pays an annual dividend of 0.68 for yield of about 16.30 percent.
MFA Financial presently pays an annual dividend of 94 cents for a yield of about 11.40 percent. Last week MFA Financial said its net income fell to $59.5 million, or 21 cents per share, in the fourth quarter, down from $76.5 million, or 27 cents per share, in the year-ago period.
The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at [ http://www.bedfordreport.com/disclaimer ]
