High Yielding REITs Begin to Slump as Stimulus Measures Pressure Bond Yields Lower
23 Oktober 2012 - 2:20PM
Marketwired
Shares of high yielding REITs have experienced a little pull back
this month. During the five days through October 15 mortgage
real-estate investment trusts have fallen 5.9 percent, which was
the largest decline since October of last year. The Paragon Report
examines investing opportunities in diversified REITs and provides
equity research on American Capital Agency Corp. (NASDAQ: AGNC) and
Invesco Mortgage Capital Inc. (NYSE: IVR).
Access to the full company reports can be found at:
www.ParagonReport.com/AGNC www.ParagonReport.com/IVR
Mortgage REITs have been successful in the past as the cost to
borrow money to buy bonds and securities have been far less than
the yields they receive. But there have been some concerns
regarding the current spread REITs earn on their purchases. As the
Federal Reserve has pledged to keep interest rates near-zero till
at least mid-2015, yields of bonds and mortgage backed securities
have been pressured lower. The yield on the Barclays U.S. MBS
Conventional 30 Year Index has fallen from 2.9 percent, in January,
to 2.4 percent. "The spread between yields and funding is
abnormally low," says Sean Kelleher, president of Shay Asset
Management.
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.
American Capital has $101 billion in assets under management and
seven offices in the U.S. and Europe. The company has declared a
cash dividend of $1.25 per share for the third quarter 2012, for a
yield of roughly 14.6 percent. American Capital Agency is scheduled
to release their third quarter 2012 financial results on October
29, 2012.
Invesco Mortgage Capital is a real estate investment trust that
focuses on financing and managing residential and commercial
mortgage-backed securities and mortgage loans. The company offers
an annual dividend of $2.60 per share for a yield of around 12.5
percent. Shares of Invesco are up nearly 50 percent for the
year.
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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