SOURCE: The Bedford Report

The Bedford Report

January 06, 2011 11:25 ET

REIT Dividends Look Stable for 2011

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

NEW YORK, NY--(Marketwire - January 6, 2011) - In 2010, Real Estate Investment Trusts were one of the darlings of Wall Street and were one the strongest performing segments of the financial sector. REITs' ability to generate this significant capital appreciation is one of the industry's main allures, as most investors flock to REITs for their hefty dividends and stability. In fact, 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. 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:

www.bedfordreport.com/2011-01-AGNC

www.bedfordreport.com/2011-01-NLY

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. While this makes paying its dividend more volatile, given the current economic conditions, REITs continue to be appealing.

Analyst consensus is that interest rates are likely to stay at the current low levels for at least the first half of 2011. Federal Reserve Chairman Ben Bernanke says that he is prepared to keep rates in the range of 0 - 0.25 percent for an extended period if the unemployment numbers don't drop significantly. At the end of 2010 the unemployment rate was around 9.7 percent.

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 www.bedfordreport.com 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. Presently, American Capital pays an annual dividend of 5.60 for yield of about 19.50%. Annaly, meanwhile, pays an annual dividend of 2.56 for a yield of 14.30%. While high yielding dividend paying stocks are appealing, be forewarned that companies can cut, slash, or suspend dividends at any time, often without notice.

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 http://www.bedfordreport.com/disclaimer

Contact Information