With the VIX volatility index pushing towards record levels over the last month, long term investors have turned their attention to safe haven plays. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Additionally, when interest rates get as low as they currently are, the return on dividends can far exceed that of bonds. The Bedford Report examines the outlook for diversified REITs and provides equity research on American Capital Agency Corporation (NASDAQ: AGNC) and Annaly Capital Management, Inc. (NYSE: NLY). Access to the full company reports can be found at:

www.bedfordreport.com/AGNC

www.bedfordreport.com/NLY

Real Estate Invest Trusts (REITs) have some of the highest yields on Wall Street. 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.

Earlier this month mortgage REITs took a sizeable hit after the Securities and Exchange Commission launched a review that could subject these companies to tighter regulation. The SEC announced that it will solicit public comment to determine if mortgage real estate investment trusts should be regulated as investment companies and therefore subject to the Investment Act of 1940. The SEC noted the Investment Act didn't foresee the explosive growth of mortgage securities or the flood of other mortgage investors that have entered the industry. According to The Wall Street Journal a big concern for mortgage REITs is they will lose their ability to employ high levels of leverage if they are subject to the Investment Act. Mortgage REITs have high dividend yields partly because the managers use high leverage, which can boost returns.

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.

Agency Mortgage REITs such as American Capital Agency and Annaly have portfolios made up principally of mortgages insured by the federal agencies Fannie Mae, Freddie Mac and Ginnie Mae. They typically borrow at low rates and lend in the mortgage markets at higher rates, usually by buying mortgage-backed securities.

Presently Annaly Capital Management pays an annual dividend of $2.60 for a yield of 14.5 percent. American Capital Agency pays an annual dividend of $5.60 per share for a hefty yield of around 19 percent.

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

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