American Capital Agency and ARMOUR Residential -- Strong Dividends for a Hectic Economy
26 Januar 2012 - 2:20PM
Marketwired
High yielding Real Estate Investment Trusts (REITs) have performed
well in the current economic climate. As reported in The Wall
Street Journal, the MSCI U.S. REIT Index returned 8.7% in 2011,
more than four times the return of the Standard & Poor's
500-stock index. REITs are a popular play in the current economy
due to their steady dividends. REITs can avoid corporate income
tax, provided they invest in real estate-related assets and pay out
at least 90 percent of their income in dividends to investors,
rather than reinvesting in their business. The Paragon Report
examines the outlook for diversified REITs and provides equity
research on American Capital Agency Corporation (NASDAQ: AGNC) and
ARMOUR Residential REIT, Inc. (NYSE: ARR). Access to the full
company reports can be found at:
www.paragonreport.com/AGNC
www.paragonreport.com/ARR
In its 2012 outlook for REITs, Credit Suisse said that while the
net interest spread opportunity contracted during 2011 the returns
on Agency Mortgage REITs remain attractive by historical standards,
while the reduced uncertainty around the prepay environment,
specifically government actions, should make for a more predictable
return path than in 2011.
Agency Mortgage REITs manage portfolios of debt. For example,
they own Fannie Mae and Ginnie Mae paper that is
government-backed.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on diversified REITs register with us free at
www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Credit Suisse says that hybrid/non-agency REITs offer more
attractive value for investors with the potential for more capital
appreciation plus a more stable dividend outlook given the
attractive re-investment environment. A hybrid mREIT owns both
agency and non-agency mortgage backed securities (MBS). Non agency
MBS are not backed by the Federal Government.
Presently American Capital Agency pays an annual dividend of
$5.60 for a yield of around 19.3 percent. ARMOUR Residential $1.32
for a yield of around 18.8 percent.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon 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.paragonreport.com/disclaimer
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