SOURCE: Paragon Financial Limited

Paragon Financial Limited

January 26, 2012 08:20 ET

High Yielding Annaly Capital and Chimera Investment -- Strong Returns for an Unstable Economy

Paragon Report Provides Equity Research on Annaly Capital Management & Chimera Investment Corp

NEW YORK, NY--(Marketwire - Jan 26, 2012) - High yielding Real Estate Investment Trusts (REITs) have performed well in the current economic climate. As reported in The Wall Street Journal, the MSCI U.S. REIT Index returned 8.7% in 2011, more than four times the return of the Standard & Poor's 500-stock index. REITs are a popular play in the current economy due to their steady dividends. 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, rather than reinvesting in their business. The Paragon Report examines the outlook for diversified REITs and provides equity research on Annaly Capital Management, Inc. (NYSE: NLY) and Chimera Investment Corporation (NYSE: CIM). Access to the full company reports can be found at:

In its 2012 outlook for REITs, Credit Suisse said that while the net interest spread opportunity contracted during 2011 the returns on Agency Mortgage REITs remain attractive by historical standards, while the reduced uncertainty around the prepay environment, specifically government actions, should make for a more predictable return path than in 2011.

Agency Mortgage REITs manage portfolios of debt. For example, they own Fannie Mae and Ginnie Mae paper that is government-backed.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on diversified REITs register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Credit Suisse says that hybrid/non-agency REITs offer more attractive value for investors with the potential for more capital appreciation plus a more stable dividend outlook given the attractive re-investment environment. A hybrid mREIT owns both agency and non-agency mortgage backed securities (MBS). Non agency MBS are not backed by the Federal Government.

Presently Annaly Capital pays an annual dividend of $2.28 for a yield of around 13.8 percent. Chimera Investment Corporation pays an annual dividend of 44 cents for a yield of around 15.4 percent.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon 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