1 Huge and Hidden Dividend Yield

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This video is part of our "Motley Fool Conversations" series, in which analyst Jim Royal and industrials editor/analyst Brendan Byrnes discuss topics around the investing world.

While mortgage REITs such as Annaly Capital, Armour Residential, and American Capital Agency have gotten all the press for their double-digit dividends, they're under pressure lately, as all have seen a sequential drop in their interest-rate spreads during the fourth quarter, resulting in declining dividends. Instead, Jim discusses a hidden stock that has yet to appear on most investors' screens because it's a recent IPO and a small-cap stock. But the new stock does pay a substantial dividend and could be a good play as the economy recovers, in contrast to the mortgage REITs.

Every now and again, we come across a stock that has us so excited we can hardly contain our investing enthusiasm. We've uncovered one such pick with so much promise that we've dubbed it: "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

At the time this article was published Brendan Byrnes has no positions in the stocks mentioned above. Jim Royal owns shares of Annaly Capital Management. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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