High unemployment has driven interest rates to record lows, boosting the profit spreads for mortgage REITs. Particularly for REITs, there's a flip side to unemployment. The Fed has been working to reduce borrowing costs and speed up the recovery through a series of efforts - most recently, "QE 3." An example of companies targeting these efforts would be Annaly Capital (NYS: NLY) , Chimera (NYS: CIM) and Invesco (NYS: IVR) , just to name a few.
For creditors like mortgage REITs, it could mean lower revenue and smaller dividends in the future. Annaly Capital Management has a history of paying huge dividends to shareholders. For investors, there can be some crucial issues to understand about Annaly's business model before buying the stock. In this brand new premium research report on the company, our analyst runs through these absolute must know topics, including the good, the bad, and the ugly, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.
The article Will the Fed Crush These Big Dividends originally appeared on Fool.com.
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.
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