SOURCE: The Bedford Report

The Bedford Report

December 01, 2010 11:25 ET

Low Interest Rates Make High Yield REITs Irresistible

The Bedford Report Provides Analyst Research on American Capital Agency & Annaly Capital

NEW YORK, NY--(Marketwire - December 1, 2010) -  Real Estate Investment Trusts or "REITs" for short have become darlings of Wall Street this year and have been one the strongest performing segments of the financial sector. The Vanguard REIT Index ETF which holds nearly 100 different REITs, has increased close to 24% this year in contrast to the Financial sector for the S&P 500, which has hardly moved in 2010. REITs' ability to generate this significant capital appreciation is an added bonus, as most investors flock to REITs for their hefty dividends and stability. The Bedford Report examines the outlook for diversified REITs and provides research reports on American Capital Agency Corporation (NASDAQ: AGNC) and Annaly Capital Management, Inc. (NYSE: NLY). Access to the full company reports can be found at:

Most of the success of the industry in the last year can be attributed to low interest rates. When interest rates get this low the return on dividends can far exceed that of bonds. Following last month's $600 billion "QE2" announcement, consensus is that interest rates will remain at low levels for the foreseeable future.

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

Another reason low interest rates make REITs appealing is how some of them make their money. Companies such as American Capital Agency and Annaly earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities, which leads to solid profits given the current conditions. Solid profits for a REIT keep those dividend payments stable because in order to be classified as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

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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