Capstead Mortgage Corp

  • This Mortgage REIT Is Living Dangerously On The Edge

    By Zain Zafar - August 17, 2013 | Tickers: ARR, CMO, HTS

    The second quarter saw a sharp spike in interest rates which caused havoc in the mortgage REITs sector. As book value losses became the norm, it became a question of which mREIT could get away with the least damage. In such an environment, Hatteras Financial (NYSE: HTS) was expected to outperform its peers since it follows a relatively conservative strategy of investing in agency Adjustable Rate Mortgages (ARMs). However, this more »

  • This mREIT Offers Book Value Preservation and a 10% Yield

    By Zain Zafar - August 5, 2013 | Tickers: AGNC, CMO, HTS

    Mortgage REITs are among the favorite asset classes for income investors thanks to their attractive dividend yields as well as modest capital appreciation over the past few years. However, with an uncertain interest rate environment thanks to the ever looming threat of the Fed’s tapering of QE3, mREITS are giving investors some sleepless nights. A few weeks ago, I had stated that Capstead Mortgage (NYSE: CMO) is the safest more »

  • Mortgage REITs Are on the Rebound

    By Red Chip - June 28, 2013 | Tickers: AGNC, NLY, CMO

    Despite the speculation about the Fed's exit, some mREITs are poised to benefit from their management structures and the positioning of their investment portfolios. Let's see which mREITs fit the bill and how they will benefit under the prevailing challenges.  

    The business model and its risks

    Mortgage REITs are complicated and dependent on changes in interest rates. They loan money for mortgages or the acquisition of existing residential more »

  • 5 Diversified REITs With Monster Yields Over 9%

    By Meena Krishnamsetty - June 27, 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 »

  • This Is The Safest mREIT To Invest In Right Now

    By Zain Zafar - June 13, 2013 | Tickers: AGNC, ARR, CMO

    The mortgage REITs space is in a lot of trouble right now as speculation regarding the Fed’s tapering off of its quantitative easing program has led to an increase in long term interest rates. Investor favorites like American Capital Agency (NASDAQ: AGNC) and ARMOUR Residential (NYSE: ARR) have witnessed the sharpest price declines in recent weeks due to fears about the decreasing value of the MBS securities held by more »

  • 5 mREITs With Attractive Yields

    By Nur Tarkak - May 30, 2013 | Tickers: NLY, CMO, CIM, HTS, TWO

    Mortgage-backed real estate investment trusts [mREITs] usually yield higher compared to other income stocks. This is due to the fact that these companies get a tax shield if their distribution of profits is at least 90%. However, income from dividends is not tax-free. Thus, investors don’t get to fully enjoy the tax-free benefit. The dividend earnings will be treated as income. Nevertheless, they are still better than having no more »

  • The Ups and Downs of the End of QE3

    By Adam Levy - May 25, 2013 | Tickers: AGNC, NLY, CMO

    With the government buying $40 billion in mortgage-backed securities every month, in addition to $45 billion in long-term treasuries, QE3 continues to have a huge impact on mortgage REITs for the time being. Ending it could provide some short-term pain and long-term gain for two companies in particular - Annaly Capital Management (NYSE: NLY) and American Capital Agency (NASDAQ: AGNC).

    How close are we to the end?

    When Fed Chairman Ben more »

  • These 3 Numbers Make This High-Yield Stock A Buy

    By Chad Henage - March 19, 2013 | Tickers: NLY, CMO, HTS, IVR | Editor's Choice

    High yielding stocks get a lot of attention these days, because of the low interest rate environment. The challenge for investors is, discovering which high yield will hold up. The REIT business holds many high yield candidates, but from what I can see, there are three numbers that make Hatteras Financial (NYSE: HTS) a buy at these levels.

    An Idea As Old As The Market Itself
    It's ironic that more »

  • A Few More REITs for Your IRA

    By Ryan Peckyno - March 5, 2013 | Tickers: CMO, DX, IVR, PMT

    A few weeks ago I wrote an article, Two REITs for Your IRA

    That article explains how REITs work and why you should consider investing in REITs.

    Since penning that article, I have done a lot of research on REITs.  And after starting with well over 100 REITs, I narrowed that list down to ten.

    Then I selected four of those to use in this article.

    Those four REITs are more »

  • Billionaire Leon Cooperman’s New High Dividend Pick

    By Meena Krishnamsetty - February 14, 2013 | Tickers: AGNC, NLY, CMO, CIM, MFA

    Omega Advisors, a hedge fund managed by billionaire Leon Cooperman, has reported a position of over 55 million shares in Chimera Investment Corporation (NYSE: CIM) in a 13G filed with the SEC. Omega now owns 5.4% of the outstanding shares of the $3.1 billion market cap company, which invests in mortgage backed securities (including residential MBSs) and other mortgage loans and is organized as a real estate investment more »

  • How Will Annaly React To Fiscal Cliff Agreement?

    By Jordo Bivona - January 7, 2013 | Tickers: NLY, ARR, CMO, HTS | Editor's Choice

    Americans are mixed on the "fiscal cliff" agreement reached by Congress and signed into law by President Barack Obama. 43% of Americans approve of the decision that was agreed upon, while 45% disapprove of the decision. The fiscal cliff agreement will dissolve some, but not all, of the negative economic impacts of going over the cliff. Most importantly, the agreement will extend the Bush-era tax cuts for the vast majority more »

  • Avoid This REIT's Financial Restatement Mess

    By Jordo Bivona - December 27, 2012 | Tickers: AGNC, NLY, CMO, CIM

    Chimera Investment (NYSE: CIM) announced that as of Sept. 30, 2012 that its GAAP book value was $3.31 per share, and its economic book value was $2.95 per share. This is compared to its estimated June 30, 2012 GAAP book value of $3.08 per share and economic book value of $2.87 per share. Estimated economic book value considers the fair value of the assets the company more »

  • How to Capitalize on the Mortgage Market

    By Mohsin Saeed - December 13, 2012 | Tickers: AGNC, NLY, ARR-A, CMO, MFA, PMT

    To stimulate growth in the sluggish US economy, the Fed announced the launch of QE3. QE3 was aimed at particularly supporting the US housing and labor markets. However, the US labor market is still not close to the kind of improvement imagined by the Fed. I believe QE3 will stay even if the financial cliff is averted. Given the situation, I recommend investors stay away from pure play Agency Mortgage more »

  • The Dividend Farm

    By Chris Hodge - December 5, 2012 | Tickers: ANH, BFR, CMO, MFA, TNH

    Dividends come in a lot of different forms, but REITs and other kinds of trusts are some of the best ways to supercharge your income from stocks. One of my favorite inventions of all time is the DRIP (dividend reinvestment plan), because it allows your dividends to automatically purchase more shares and literally build your wealth for you.

    Now, I would never suggest you fill your entire portfolio with REITs more »

  • Dividend Bonanza or Dividend Bust?

    By Chris Hodge - November 21, 2012 | Tickers: CMO, CIM, MGIC, MSB

    Dividends are one of my favorite parts of investing. While I have no idea when the "right" time is to buy and sell, I know that a regular dividend will theoretically keep paying me for a long time. While there's no guarantee of a dividend, when there's a fairly long past history and a solid business model in place with ample profits, the likelihood is reasonable.

    I think more »

  • Election Implications for Annaly’s Mortgages

    By Douglas Ehrman - November 6, 2012 | Tickers: AGNC, NLY, CMO

    Of the myriad of potential impacts that the U.S. Presidential election will have on the global economy, the very role the government will play in financial matters should be of particular concern. In a statement released by Annaly Capital Management (NYSE: NLY), the company said that it fears a win by President Obama could mean more “meddling” by regulators and legislators. Given the $5.2 trillion size of the more »

  • Should You Buy Annaly Capital Management?

    By Meena Krishnamsetty - October 19, 2012 | Tickers: NLY, CMO, CIM, RWT, TWO

    A 12.8% dividend yield! That’s the most obvious appeal at Annaly Capital Management (NYSE: NLY), a real estate investment trust that manages investment securities (most notably mortgage-backed securities). With three quarters of the year in the books, the company has paid $1.60 per share in dividends in comparison to the current stock price of just under $16. Its dividend payments have declined in the past few years more »

  • Is This REIT a Good Contrarian Play at the Moment?

    By Meena Krishnamsetty - October 12, 2012 | Tickers: NLY, CMO, CIM, HTS, TWO

    Annaly Capital Management (NYSE: NLY) is one of the most loved REITs, paying a dividend that yields 12.2% and boasting a market cap of $15 billion. Being an owner, manager, and financer of various real estate related investments, Annaly has navigated the tough real estate market relatively well, being down only 9% since 2008, versus the S&P 500’s 3% decline over this time period.

    However, Morgan Stanley more »

  • Will REITs Kiss High Dividends Goodbye?

    By Karen Rogers - September 20, 2012 | Tickers: AGNC, NLY, CMO

    Ben Bernanke’s decision to go ahead with the newest round of quantitative easing was bad news for some market sectors.  During the recent FOMC meeting, the Federal Reserve announced they would continue to keep long-term interest rates low by purchasing an additional $40 billion dollars’ worth of agency mortgage-backed securities in addition to the $25 billion per month the Fed was already buying.

    But just what is the Federal more »

  • This mREIT is the Best Investment for QE3

    By Meena Krishnamsetty - September 19, 2012 | Tickers: AGNC, NLY, ANH, CMO, HTS

    Unless you’ve been living under a rock for the last few days, you’re probably aware of Ben Bernanke’s newest plan to stimulate the economy, via purchases of mortgage-backed securities. Okay, to call the plan new isn’t really fair, as its name QE3 would suggest, but it is slightly different nonetheless, with the Federal Reserve Chairman squarely declaring his commitment to an open-ended policy until significant improvements more »

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