SOURCE: Paragon Financial Limited
NEW YORK, NY--(Marketwire - May 16, 2012) - High yielding mortgage REITs have performed admirably in 2012. The Vanguard REIT ETF (VNQ) is up more than 12 percent-year-to-date. REITS have continued to take advantage of low interest rates to boost earnings and increase dividends for investors. REITs trade like stocks, but by law, they must pay out 90 percent of their taxable income to shareholders as dividends. The Paragon Report examines investing opportunities on diversified REITs and provides equity research on Chimera Investment Corporation (NYSE: CIM) and Annaly Capital Management, Inc. (NYSE: NLY).
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Continuously low interest rates are boosting earnings throughout the sector. Dividend returns for Mortgage REITs are partially dependent on interest rate spreads. Higher interest rates make borrowing less profitable for REITs. Federal Reserve Chairman Ben Bernanke last month said that the central bank "would not hesitate" to purchase more bonds to drive borrowing costs lower if the economy needed it.
The Federal Reserve has kept its benchmark rate near zero since December 2008, and last month the Fed's policy panel reiterated that it does not expect rates to rise until late 2014 at the earliest. It has also bought $2.3 trillion of bonds in two rounds of so-called quantitative easing.
Paragon Report 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.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.
Chimera Investment Corporation invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. The Company's principal business objective is to generate income from the spread between the yield on its investment portfolio and its cost of borrowing and hedging activities. The company currently offers investors an annual dividend of $0.44 per share for a yield of 15.38 percent.
Annaly Capital Management owns, manages, and finances a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. The company currently offers investors an annual dividend of $2.20 per share for a yield of 13.31 percent.
Paragon 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 Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: