Hefty Dividends From Annaly and Chimera Remain Stable in Current Economic Climate
October 12, 2011 08:16 ET
Hefty Dividends From Annaly and Chimera Remain Stable in Current Economic Climate
The Bedford Report Provides Equity Research on Chimera Investment Corp & Annaly Capital
NEW YORK, NY--(Marketwire - Oct 12, 2011) - High yielding Real Estate Investment Trusts (REITs) have been a popular investment since the low interest rate environment set in two years ago. Several REITs earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities, making the present economic climate highly lucrative for REITs. The Bedford Report examines the outlook for diversified REITs and provides equity research on Chimera Investment Corporation (
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Mortgage REITs typically borrow at low rates and lend in the mortgage markets at higher rates, usually by buying mortgage-backed securities. By purchasing bonds guaranteed by the government, analysts argue these companies take on no risk of default, with the principle concern being an interest rate risk. Hybrid mREITs, meanwhile, are moderately riskier as they own mortgage backed securities (MBS) or any debt obligations which do not have an implicit guarantee of the US Federal Government.
Most mREITS (Hybrid or not) earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. The Federal Reserve has expressed its intention to keep interest rates low which means that REITs should enjoy a good spread for the foreseeable future.
The Bedford Report releases stock research 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.
Chimera Investment Corporation pays an annual dividend of 52 cents a share for a hefty yield of around 19.5 percent. Chimera invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. Over half of the company's portfolio is invested in non-agency MBS.
Presently Annaly Capital Management pays an annual dividend of $2.60 for a yield of 15.5 percent. Annaly manages assets on behalf of institutional and individual investors worldwide. The Company's principal business objective is to generate net income for distribution to investors from its investment securities and from dividends it receives from its subsidiaries.
The Bedford Report provides Market 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 ]