SOURCE: The Bedford Report

The Bedford Report

June 27, 2011 08:16 ET

Low Interest Rate Environment Crucial for REIT Dividends

The Bedford Report Provides Investment Research on ARMOUR Residential & Invesco Mortgage

NEW YORK, NY--(Marketwire - Jun 27, 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 the REIT sector and provides equity research on ARMOUR Residential REIT, Inc. (NYSE: ARR) and Invesco Mortgage Capital, Inc. (NYSE: IVR). Access to the full company reports can be found at:

www.bedfordreport.com/ARR
www.bedfordreport.com/IVR

REITs 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.

Earlier this month ARMOUR Residential REIT announced that its Board of Directors declared a third quarter monthly dividend rate of $0.12 per share. ARMOUR Residential invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage-backed securities issued or guaranteed by US Government-chartered entities.

Invesco Mortgage Capital presently pays an annual dividend of $3.88 per share for a massive yield of around 18.3 percent. Last week the company announced its plan to offer 15 million shares of its common stock. Invesco says the proceeds from the offerings will aid in additional acquisitions of residential and commercial mortgage-backed securities and mortgage loans, on a leveraged basis along with other general corporate purposes.

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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