The Hidden Threat to Massive Dividends

The economic downturn has been a boon to mortgage REITs and the dividends their investors collect. Relatively slow refinancing activity during the downturn has meant big profit spreads without the downside of prepayments for mREITs, such as Annaly Capital (NYS: NLY) , Chimera (NYS: CIM) and Invesco (NYS: IVR) , to name a few.

However, the White House and the Fed are starting to get some traction in their efforts to help homeowners capitalize on record low interest rates. August prepayments hit their highest level in seven years. Ilan Moscovitz and Austin Smith discuss what this could mean for dividend investors. Annaly investors, in particular, have been on the receiving end of  huge dividends lately, but there are some crucial issues to understand before buying the stock. In this brand new premium research report on the company, our analyst runs through these absolute must know topics, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.

The article The Hidden Threat to Massive Dividends originally appeared on

Austin Smith has no positions in the stocks mentioned above. Ilan Moscovitz has no positions in the stocks mentioned above. The Motley Fool owns shares of Annaly Capital Management. 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.