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Is It Time to Dump the Market's Hottest Dividends?
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Published Fri, 23 Mar 2012 22:36:43 GMT on The Motley Fool
This video is part of our "Motley Fool Conversations" series, in which analyst Jim Royal and technology and media editor/analyst Andrew Tonner discuss topics around the investing world.
Mortgage REITs such as Annaly Capital, Armour Residential, and American Capital Agency have all seen a sequential drop in their interest-rate spreads during the fourth quarter. That has many investors worried about where these stocks' huge dividends -- the very reason investors own these REITs -- are headed. Investors need to remain cautious on these companies, but with funding costs likely to continue to be low as the Federal Reserve keeps rates near zero through 2014, it looks like there's still some time to profit in these REITs.... Read more


