Dividends4Life: 7.45% Yield Investment Continues To Be Better Than Most Preferred Shares

This company runs a highly leveraged portfolio of agency ARMs. It is routinely a good investment for the buy-and-hold investor and occasionally for traders. The ex-dividend date is coming up and there’s about $0.41 of dividend accrual.

Capstead Mortgage Corporation (CMO) has a relatively safe portfolio compared with the sector. Capstead has a highly leveraged portfolio of agency adjustable rate mortgages. While the leverage is over 9x, the agency guarantee makes the securities practically immune to credit risk. The market for agency adjustable rate mortgage is extremely liquid. This strategy also reduces duration risk.

Source: Seeking Alpha

Related Articles:
- High-Yield, High-Return Investments To Increase Income While Waiting On Dividend Growth
- Illinois Tool Works Inc. (ITW) Dividend Stock Analysis
- The Most Dangerous Investment
- 9 Dividend Stocks Beating The 4% Rule
- You Can't Spend Earnings

Click here to have future posts delivered to you for free!

________________________________________________________________

0 comments

Post a Comment

~

Popular Posts Last 30 Days