NEW YORK, NY--(Marketwire -02/16/12)- Despite dividend cuts from some of the industry's heavyweights, shares of high yielding Mortgage REITs have performed well this earnings season. The Market Vector Mortgage REIT Income ETF (MORT) is up more than five percent over the last month -- handedly outperforming the Dow Jones Industrial Average. The Paragon Report examines the outlook for diversified REITs and provides equity research on Annaly Capital Management, Inc. (NYSE: NLY - News) and Invesco Mortgage Capital Inc. (NYSE: IVR - News). Access to the full company reports can be found at:
Analyst Bill Carcache of Nomura Securities issued a report stating that mortgage REITs delivered solid risk-adjusted returns during the quarter ended December 31, 2011 despite continued flattening of the yield curve. "As expected, spreads contracted and dividends were cut. Prepayment speeds generally increased, and they remain a concern in the current environment. Book value growth was flat to negative for most companies and economic returns were generally lower relative to the first three quarters of 2011," Carache explains.
The Paragon Report provide investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on diversified REITs register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
Last week Annaly Capital Management Inc posted a quarterly profit that missed analysts' expectations, hurt by higher costs and losses from its agency mortgage-backed securities. Annaly Capital Management reported a net income of $441.41m, or $0.44 diluted earnings per share, for the fourth quarter of 2011, compared to $1.21bn, or $1.84 diluted earnings per share, for the same period in 2010. The company presently pays an annual dividend of $2.28 per share for a yield of around 13.8 percent.
Invesco Mortgage Capital Inc. is a real estate investment trust (REIT) primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The company presently pays an annual dividend of $2.6 per share for a yield of around 16.7 percent.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon 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.paragonreport.com/disclaimer