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American Capital Mortgage Investment Corp

  • Mortgage REITs Are Still a Sell

    By Reuben Brewer - June 13, 2013 | Tickers: MTGE, NLY, ARR, CIM

    Like many other real estate investment trusts (REITs), mortgage REITs have sold off of late. That drop, however, doesn't make them buys. Investors should still avoid ARMOUR Residential REIT (NYSE: ARR), American Capital Mortgage Investment (NASDAQ: MTGE), Chimera Investment (NYSE: CIM), and Annaly Capital Management (NYSE: NLY).

    The carry trade

    Mortgage REITs use equity and, more importantly, debt to buy mortgages. With interest rates at historically low levels, these more »

  • 5 Diversified REITs With Monster Yields Over 9%

    By Meena Krishnamsetty - June 12, 2013 | Tickers: MITT, MTGE, NLY, ARI, CMO

    Real estate investment trusts are no strangers to paying high dividend yields, as their incorporation and tax structures entitle them to deduct dividends paid to owners, significantly dodging a large U.S. federal income tax bill every year. Investors looking for high yields shouldn’t turn a blind eye to this industry, and gems with yields north of 9% can be found with a little digging.

    We pay attention to more »

  • Are Your Dividends Sustainable?

    By Adnan Khan - May 28, 2013 | Tickers: MTGE, NYMT, NCT

    Mortgage REITs have a special place in the hearts of investors thanks to the ultra-low interest rate environment, which has made their dividends extremely attractive. Given that the 10-year Treasuries are currently offering only 1.94%, the double-digit dividends offered by many mREITs attract the retail investor.

    However, the prevailing macroeconomic environment is not ideal for a mortgage business model. Therefore, investors looking to invest in mREITs in order to more »

  • Are Your Dividends Sustainable?

    By Adnan Khan - May 23, 2013 | Tickers: MTGE, NYMT, NCT

    Mortgage REITs have a special place in the hearts of investors thanks to the ultra-low interest rate environment, which has made their dividends extremely attractive. Given the 10-year Treasuries are currently offering only 1.94%, the double digit dividends offered by many mREITs attract the general investor. However, the prevailing macroeconomic environment is not ideal for a mortgage business model. Therefore, investors looking to invest in mREITs in order to more »

  • Another Story of Compressed Spreads and Book Value, But the Outlook is Brighter

    By Adnan Khan - May 14, 2013 | Tickers: AGNC, MTGE, NLY

    Annaly Capital Management (NYSE: NLY) reported yet another story of spread and book value compression. However, the outlook for the second quarter of the current year looks promising. The remaining of the investment thesis will discuss the latest financial disclosures and see which factors will lead the company to reported growth in the second quarter.

    Financial review

    While Annaly Capital reported EPS of $0.47, marginally above it’s $0 more »

  • 3 REITs to Bolster Your Portfolio

    By Ash Anderson - April 18, 2013 | Tickers: ACC, MTGE, PCL

    When it comes to Real Estate Investment Trusts (REITs), there’s a multitude out there. Some buy up health centers while some focus on shopping malls. One thing that all of these REITs have in common is that they must distribute 90% of their taxable income to investors.

    These REITs are publicly traded, which means we can get our hands on these juicy 90% payouts while holding a diversified bundle more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 16, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 16, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Three REITs to Bolster Your Portfolio Yield

    By Ash Anderson - April 15, 2013 | Tickers: ACC, MTGE, PCL

    When it comes to Real Estate Investment Trusts (REITs), there’s a multitude out there. Some buy up health centers while some focus on shopping malls. One thing that all of these REITs have in common is that they must distribute 90% of their taxable income to investors.

    These REITs are publicly traded, which means we can get our hands on these juicy 90% payouts while holding a diversified bundle more »

  • Fed Governor Exposes Mortgage REIT Risk

    By Reuben Brewer - April 14, 2013 | Tickers: MTGE, ACAS, ARR

    In a recent speech, Fed Governor Jeremy Stein used mortgage real estate investment trusts (REITs) as an example of the impact of the Federal Reserve's low rate policy. While his speech wasn't an effort to say Mortgage REITs are bad investments, investors need to understand the risks these niche securities pose.

    A Simple Example

    Stein explains: “These agency REITs buy agency mortgage-backed securities (MBS), fund them largely in more »

  • Insiders Are Crazy About These REITs

    By Meena Krishnamsetty - April 12, 2013 | Tickers: MTGE, ARR, NCT, SPG, TWO

    Company insiders should be strongly resistant to buying shares, since it increases company-specific risk rather than diversifying their wealth. Therefore, insider purchases should signal confidence in the company, and it turns out that stocks bought by insiders- particularly multiple insiders- do outperform the market on average (see our analysis of studies on insider trading).

    Real estate investment trusts (REITs) often pay high dividend yields, since these companies are required to more »

  • The Market Might Have Peaked, but These Stocks Are Worth a Watch

    By Mark Morelli - April 5, 2013 | Tickers: MTGE, ARI, CVX, LEG

    The first quarter is over. The market did very well during the first three months of 2013. The Dow Jones Industrial Average gained 8.7% and the S&P 500 rose 7.3%, not counting reinvestment of dividends.

    Doom and gloom

    Some analysts have said that the market may have already peaked for the year, and that a "correction" surely is on the way. Depending on which "doom and gloom more »

  • Has the market already peaked?

    By Mark Morelli - April 2, 2013 | Tickers: MTGE, ARI, CVX, LEG

    The first quarter is over. The market did very well during the first three months of 2013. The Dow Jones Industrial Average gained 8.7% and the S&P500 index rose 7.3%, not counting reinvestment of dividends.

    Doom and gloom

    Some analysts have said that the market may have already peaked for the year and that a "correction" surely is on the way. Depending on which "doom and gloom more »

  • 3 Hybrid REITs Insiders Love

    By Adnan Khan - March 28, 2013 | Tickers: MTGE, AMTG, NYMT

    Since the launch of QE3, Agency mortgage REITs suffered compressions in their spreads. Therefore, Hybrid REITs, which invest across the MBS universe, were the most favored picks among the mortgage REITs sector during the past few quarters. The high yielding non-Agency residential mortgage backed securities and commercial mortgage backed securities supported the hybrid mortgage REITs’ spreads during the challenging times. Among the hybrid mortgage REITs, some outperformed the sector, which more »

  • Are Your Hybrid REITs’ Dividends Sustainable?

    By Adnan Khan - March 26, 2013 | Tickers: MTGE, IVR, MFA

    Hybrid mortgage REITs have been analysts’ favorite since the launch of the Fed’s quantitative easing program, better known as QE3. It is because hybrid mortgage REITs are considered to be more flexible in their investments compared to their pure-play counterparts. Their investments in high yielding non-Agency residential mortgage backed securities in recent times well supported the net interest rate spreads and the bottom line during the past two quarters more »

  • Get to Know This 16% Dividend Yielder

    By Adnan Khan - March 19, 2013 | Tickers: AGNC, MTGE, WMC

    While Western Asset Mortgage Capital (NYSE: WMC) is trading in line with its peers as far as its relative valuations are concerned, it is still an attractive investment for investors looking to enhance their regular income. The investment thesis aims to explore reasons for its attractiveness and review its recent operating performance.

    Company Business

    Western Asset operates as a mortgage REIT in the United States with a market cap of more »

  • Are Your Dividends Sustainable?

    By Adnan Khan - March 18, 2013 | Tickers: MTGE, ANH, ARR, CYS

    This article brings to you the latest dividend declaration and dividend cuts by some of the most famous dividend stocks within the US mortgage REITs sector. The article also aims to distinguish between the mREITs which were forced to cut their dividends from the mREITs which maintained their shareholder distributions.

    Armour Residential

    Armour Residential (NYSE: ARR) reported a 12.5% decrease in its monthly dividend rate for the first quarter more »

  • Bullish Signals At This 12% Yielding mREIT

    By Adnan Khan - March 15, 2013 | Tickers: MTGE, IVR, WMC

    Invesco Mortgage Capital (NYSE: IVR) reported insider buying, signaling management’s confidence in the company’s future. Let's dive in and summarize the recent insider buying at Invesco, and compare the company's performance with that of its peers.

    Insider bullishness

    Invesco Mortgage Capital reported insider buying by its CEO Richard King. King added 8% to his stake in Invesco Mortgage after he bought $100,000 worth of shares more »

  • Insider Buying At This 17% Dividend Yielding mREIT

    By Adnan Khan - March 13, 2013 | Tickers: MTGE, IVR, WMC

    Note: A previous version of this article inaccurately stated Western Asset Mortgage Capital's stock price relative to its book value. The error has been corrected.

    Western Asset Mortgage Capital (NYSE: WMC) has been named top dividend stock with insider buying last month in an article on Forbes. Paid in quarterly installments, the company distributes $3.60 per share. This article aims to explore the sustainability of the company's more »

  • How to Play the Real Estate Rebound

    By Mark Morelli - March 5, 2013 | Tickers: MTGE, HD, KMP, LOW

    More signs that the real estate market has bottomed out and is on an upward track were evident in two recently released reports:

    1) The S&P/Case Shiller index indicated that prices of single-family homes has increased 6% year-over-year at the end of 2012, the best showing in six years. Only one metro area (NYC) out of 20 reported a decrease.

    2) The U.S. Commerce Department reported that more »

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