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Thu, March 29, 2012

Above Average Dividend Outlooks for American Capital Agency and Chimera Investment Poised to Lure Investors


Published on 2012-03-29 05:27:09 - Market Wire
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March 29, 2012 08:20 ET

Above Average Dividend Outlooks for American Capital Agency and Chimera Investment Poised to Lure Investors

Five Star Equities Provides Stock Research on American Capital Agency & Chimera Investment Corporation

NEW YORK, NY--(Marketwire - Mar 29, 2012) - Mortgage REITs have outperformed the market in 2012 as investors continue to flock towards their large dividends. Presently the Market Vectors Mortgage REIT Income ETF (MORT) -- with holdings such as American Capital Agency Corporation and Chimera Investment Corp -- is up more than ten percent year to date. Five Star Equities examines the outlook for diversified REITs and provides investment research on American Capital Agency Corporation (NASDAQ: [ AGNC ]) and Chimera Investment Corporation (NYSE: [ CIM ]). Access to the full company reports can be found at:
[ www.fivestarequities.com/AGNC ]
[ www.fivestarequities.com/CIM ]

In a recent report from Keefe, Bruyette & Woods (KBW), REITs are currently attractive relative to the fixed income markets, given the sector's above-average dividend growth outlook. The firm expects 10 percent annual dividend growth per year for the next few years, Barron's reports.

According to Nomura Securities analyst Bill Carcache, effective prepayment risk management helps agency mortgage REITs generate higher returns "by being able to run at higher leverage without compromising their equity cushion and minimize spread compression."

Five Star Equities releases regular market updates on diversified 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.fivestarequities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

American Capital Agency Corporation invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by government-sponsored entities or by the United States government agency. The company presently pays an annual dividend of $5 per share for a large yield of more than 17 percent.

Through its subsidiaries, Chimera Investment Corporation invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. The company currently pays an annual dividend of 44 cents a share for a yield of roughly 14.9 percent.

Five Star Equities 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. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
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