Dividends4Life: Hottest Dividend Sector

Hottest Dividend Sector

Posted by D4L | Wednesday, April 20, 2011 | | 0 comments »

"What the wise man does in the beginning, the fool does in the end."
--Warren Buffett

With eye-bulgingly huge yields, the mortgage REIT sector has become a true market darling. Yields such as Annaly Capital's (NYSE: NLY ) 14.4% or American Capital Agency's (Nasdaq: AGNC ) 20.1% have become too tempting for yield-starved investors in a near-zero interest rate world. And financial backers sponsoring IPOs have been rushing to market to take advantage of the opportunity.

According to The Wall Street Journal, seven of the nine real estate investment trusts that have filed for IPOs so far this year will invest in mortgage-backed securities. Those nine deals are looking to raise $2.6 billion in capital, the largest amount for mortgage REITs since 2009. Among the largest REIT IPOs are Pimco REIT, which is looking for $600 million, and American Capital Mortgage Investment, which seeks $500 million. These mortgage REITs cater specifically to retail investors.

Source: Motley Fool

Related Articles:

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.

Dividend Growth Stocks News

~

Popular Posts Last 30 Days