SOURCE: The Bedford Report

The Bedford Report

March 23, 2011 07:35 ET

REIT Dividends Begin to Show Instability

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

NEW YORK, NY--(Marketwire - March 23, 2011) - With the markets showing signs of volatility this month, investors are once again looking for safe havens. Dividend paying stocks traditionally get plenty of attention during hectic times in the market believing in the companies' 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 percent 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 American Capital Agency Corporation (NASDAQ: AGNC). Access to the full company reports can be found at:

Earlier this month, Federal Reserve Chairman Ben Bernanke said the Fed will leave interest rates unchanged "for an extended period" to provide liquidity to the economy. Companies such as Chimera and American Capital Agency earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. Given the current economic conditions, analysts argue that REITs' profits will remain stable.

The Bedford Report releases regular market updates 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.

Chimera Investment Corporation invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. On Monday, Chimera's board announced that it would pay a 14-cent dividend for the first quarter, an 18 percent drop from the prior quarter's payout. The announcement caused a noticeable drop in shares of the company.

Currently, American Capital Agency pays an annual dividend of 5.60 for a yield of around 18.50 percent. Yesterday, the company said it plans a public offering of 27 million shares of common stock and said it expects to use the net proceeds from the offering to acquire additional agency securities as well as for general corporate purposes.

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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