SOURCE: The Bedford Report

The Bedford Report

August 23, 2011 08:16 ET

High Yielding REITs Gain Popularity During Market Unrest

The Bedford Report Provides Equity Research on American Capital Agency & ARMOUR Residential

NEW YORK, NY--(Marketwire - Aug 23, 2011) - In the aftermath of S&P's downgrade to the US' credit rating investors are looking for safe havens. Traditionally, high yielding REITs garner attention due to their reliable income. As REITs, these companies are typically not taxed on their income but are required to pay out 90 percent of their taxable income in dividends. The Bedford Report examines the outlook for diversified REITs and provides equity research on American Capital Agency Corporation (NASDAQ: AGNC) and ARMOUR Residential REIT, Inc. (NYSE: ARR). Access to the full company reports can be found at:

Most Mortgage REITs have portfolios made up principally of mortgages insured by the federal agencies Fannie Mae, Freddie Mac and Ginnie Mae. They typically borrow at low rates and lend in the mortgage markets at higher rates, usually by buying mortgage-backed securities. By purchasing bonds guaranteed by the government, analysts argue these companies take on no risk of default, with the principle concern being an interest rate risk. The good news for REIT investors is that The Fed last week announced that it would hold its benchmark interest rate near zero for at least through mid-2013, replacing an earlier promise to keep it there for "an extended period."

Meanwhile continued housing market weakness has buoyed apartment occupancy rates and stabilized rental fees to the benefit of the residential real estate investment trust industry. High unemployment has also led many homeowners to rent helping to reduce vacancies.

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 American Capital Agency pays an annual dividend of $5.60 a share for a hefty yield of around 19.6 percent. The company reported total revenues of $264.7 million in the second quarter as compared to just $50.6 million in the same quarter a year earlier

ARMOUR Residential REIT pays an annual dividend of $1.44 per share for a huge yield of around 19.4 percent. The Company's portfolio consisted of Fannie Mae, Freddie Mac and Ginnie Mae mortgage securities and was valued at $5.3 billion as of June 30, 2011.

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