The Threat to Your Big Dividends

The following video is part of our "Motley Fool Conversations" series, in which financial and economics sector head Ilan Moscovitz and consumer goods editor/analyst Austin Smith discuss topics across the investing world.

Mortgage REITs are incredibly popular with dividend investors. That's because low short-term interest rates have driven their cost of funding to a low point. But even with short-term rates near zero, long-term rates are continuing to fall. This could have implications for mortgage REITs' profitability -- and dividends.

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Austin and Ilan have no positions in the stocks mentioned above. The Motley Fool owns shares of Chimera Investment and 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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  • Report this Comment On February 18, 2012, at 9:01 AM, gcdavis03 wrote:

    As the interest rate spread closes, how low do you thing the yields will drop for stocks like AGNC or ARR?

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