SOURCE: The Bedford Report

The Bedford Report

October 14, 2010 12:21 ET

How Stable Are These High REIT Dividends?

The Bedford Report Provides Analyst Research on Chimera Investment Corporation and MFA Financial

NEW YORK, NY--(Marketwire - October 14, 2010) - Dividend paying companies are attracting a lot of attention right now. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Typically this is the case, but there are some risky exceptions. High yielding REITs (Real Estate Investment Trusts) must pay out 90% of their taxable income in dividends, meaning that making their dividend payouts will be more volatile. The Bedford Report examines the outlook for diversified REITs and provides research reports on Chimera Investment Corporation (NYSE: CIM) and MFA Financial, Inc. (NYSE: MFA). Access to the full company reports can be found at:

REITs earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. REITs have posted a nice turnaround in the most recent quarter. The Dow Jones All Equity REIT index rose 12.5% during the third quarter, a vast improvement from the second quarter when REITs posted a 5% decline. A recent study in The Wall Street Journal found that REITs were helped by confidence that credit is becoming more available to commercial real estate.

The Bedford Report releases regular market updates on the REIT Industry 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 for free at and get exclusive access to our numerous analyst reports and industry newsletters.

As mentioned, REITs have some of the highest yields on Wall Street. While high yielding dividend paying stocks are appealing, be forewarned that companies can cut, slash, or suspend dividends at any time, often without notice. Presently, Chimera pays an annual dividend of 0.72 for yield of about 17.90%. Meanwhile MFA Financial pays 0.90 annually for a yield of 11.70%.

The Bedford Report provides Analyst 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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