SOURCE: The Bedford Report

The Bedford Report

November 15, 2011 08:16 ET

Hefty Dividends From Chimera and Invesco Likely to Stay Strong in Fourth Quarter

The Bedford Report Provides Equity Research on Chimera Investment & Invesco Mortgage Capital

NEW YORK, NY--(Marketwire - Nov 15, 2011) - After struggling for most of the summer, shares of high yielding Mortgage REITs are finally on the upswing as a strong earnings season and more stable market has restored confidence in the sector. REITs must pay at least 90 percent of their taxable income in the form of dividends, and given the strong earnings season investors are optimistic about future shareholder return. The Bedford Report examines the outlook for diversified REITs and provides equity research on Chimera Investment Corporation (NYSE: CIM) and Invesco Mortgage Capital, Inc. (NYSE: IVR). Access to the full company reports can be found at:

REITs were hammered after the SEC announced that it will solicit public comment to determine if mortgage real estate investment trusts should be regulated as investment companies and therefore subject to the Investment Act of 1940. While analysts don't expect the exemption to be lifted, the SEC review was acting as a cloud over the industry's future.

Fortunately, this earnings season drew attention away from potential long term headwinds. Mortgage REITs continued to post strong numbers as the firms benefitted from favorable interest rate spreads. Most mREITS 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.

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 and get exclusive access to our numerous analyst reports and industry newsletters.

Currently Invesco Mortgage Capital pays an annual dividend of $3.20 for an enormous yield of around 21 percent. The Company's portfolio of mortgage-backed securities was $14.3 billion as of September 30, 2011, an increase of $2.1 billion from June 30, 2011. For the quarter ended September 30, 2011, average earning assets were $13.3 billion which generated interest income of $138.3 million. This represents an increase of $3.1 billion, or 30%, and $29.3 million, or 27%, respectively, from the second quarter of 2011.

Chimera Investment Corporation is a specialty finance company that invests, either directly or indirectly through its subsidiaries, in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. The company pays an annual dividend of 52 cents for a hefty yield of around 18.1 percent.

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

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