|By Marketwired .||
|March 28, 2013 08:20 AM EDT||
NEW YORK, NY -- (Marketwire) -- 03/28/13 -- Real estate investment trusts (REITs) that invest in mortgage-backed securities have continued to attract investors with double digit gains and high yielding dividends. The iShares FTSE NAREIT Mortgage Plus Capped ETF (REM) has gained nearly 15 percent year-to-date. Research Driven Investing examines investing opportunities on diversified REITs and provides equity research on American Capital Agency Corp. (NASDAQ: AGNC) and Annaly Capital Management, Inc. (NYSE: NLY).
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REITs are a popular play in the current economy due to their steady dividends, which currently averages around 13 percent, nearly 7 times the average dividend yield of the S&P 500. 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.
"Despite their run, REITs remain attractive to income investors. But we warn our clients that funds using stock REITs are very different animals than those buying mortgages," says Matt Reiner, chief investment officer at Capital Investment Advisors. "Compared to Treasuries, mortgage REITs are paying much better yields -- and we don't see that trend reversing soon," says Reiner.
Research Driven Investing 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.RDInvesting.com and get exclusive access to our numerous stock reports and industry newsletters.
American Capital Agency is a real estate investment trust that invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. The company pays a quarterly dividend of $1.25 a share for a dividend yield of roughly 15.4 percent.
Annaly's principal business objective is to generate net income for distribution to its shareholders from its Investment Securities and from dividends it receives from its subsidiaries. The company pays a quarterly dividend of $0.45 a share for a dividend yield of roughly 11.5 percent. Shares of Annaly have gained over 11 percent year to date.
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