5-Star Stocks Poised to Pop: CYS Investments

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT CYS Investments (NYS: CYS) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at CYS' business and see what CAPS investors are saying about the stock right now.

CYSfacts

Market Cap$2.3 billion
IndustryMortgage REIT
Trailing-12-Month Revenue$183.3 million
ManagementChairman/CEO Kevin Grant
CFO Frances Spark
Return on Equity (average, past 3 years)21.6%
Cash/Debt$57.7 million / $9.9 billion
Dividend Yield14.3%
CompetitorsAnnaly Capital Management
Capstead Mortgage
MFA Financial

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 203 members who have rated CYS believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those bulls, goldengems, tapped CYS as a particularly attractive income opportunity:

Fed assurance regarding interest rates to 2014 means CYS cost of borrowing will remain low, protecting the outsize dividends produced from its [residential mortgage-backed securities] portfolio. Should many of the underlying home loans be refinanced at lower rates, the dividend would fall. There are few places where you can pick up shares for $13 and change, and look forward to a $2 annual dividend.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, CYS may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: CYS Investments originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Annaly. Motley Fool newsletter services have recommended buying shares of Annaly. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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