Reap Double-Digit Dividends in Real Estate the Easy Way: American Capital Agency Corp. (AGNC), Chimera Investment Corporation (CIM)

American Capital Agency Corp. (NASDAQ:AGNC) gained 23%, and yields a huge 15.8%. There are concerns that the dividend may get reduced (again), but even a halving would leave a hefty payout. In the meantime, the company recently benefited from an increased interest rate spread that was higher than some high-profile peers, and it has boosted the proportion of its portfolio that isn’t likely to suffer from borrowers refinancing and prepaying mortgages. Its CEO has been buying shares, too. Look at its big picture, though, as there are some aspects of the company that aren’t too appealing.

Chimera Investment Corporation (NYSE:CIM) advanced 21%, yielding 11.8%. It has made money by taking on more risk than many of its brethren. My colleague John Maxfield has expressed doubts about the company, and it has not filed required reports on time, either, which is a concern. But he also notes that some major investors have been upping their stakes in Chimera.

ARMOUR Residential REIT, Inc. (NYSE:ARR) rose 11%, and yields 14.4%. It has been an agency-backed real-estate investor, but recently changed its charter to broaden its scope. This may lead to greater profits down the road.

The article Reap Double-Digit Dividends in Real Estate the Easy Way originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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