SOURCE: The Bedford Report

The Bedford Report

June 20, 2011 08:16 ET

Chimera and Two Harbors Likely to Maintain Hefty Dividends for at Least 2011

The Bedford Report Provides Investment Research on Chimera and Two Harbors Investment

NEW YORK, NY--(Marketwire - Jun 20, 2011) - Real Estate Investment Trusts (REITs) have some of the highest yields on Wall Street. As a REIT, these companies are typically not taxed on their income but are required to pay out 90 percent of their taxable income in dividends. While this makes dividend payments more volatile, analysts argue that REITs' profits should remain stable given the current economic conditions. The Bedford Report examines the outlook for diversified REITs and provides equity research on Chimera Investment Corporation (NYSE: CIM) and Two Harbors Investment Corporation (NYSE: TWO). Access to the full company reports can be found at:

www.bedfordreport.com/CIM

www.bedfordreport.com/TWO

REITs such as Chimera and Two Harbors earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. The Federal Reserve has expressed its intention to keep interest rates low which means that REITs should enjoy a good spread for the foreseeable future. Reports from Reuters argue that remarks from Federal Reserve Chairman Ben Bernanke have helped send expectations of an interest rate hike back to about October of 2011.

The Bedford Report releases stock research on 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.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Last week Two Harbors Investment Corporation declared a quarterly dividend of $0.40 per share of common stock for the second quarter of 2011. As of the most recent quarter, the total value of the company's portfolio was $3.0 billion, which was comprised of $2.4 billion of Agency RMBS (residential mortgage-backed security), $83.0 million of Agency derivatives, and $525.0 million of non-Agency RMBS.

Chimera Investment Corporation currently pays an annual dividend of $0.56 per share of common stock, for a yield of approximately 16 percent. The company claims that its business objective is "to generate net income from the spread between the yields on its investments and the cost of borrowing to finance their acquisition and secondarily to provide capital appreciation."

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford 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.bedfordreport.com/disclaimer.

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