This video is part of our "Motley Fool Conversations" series, in which analyst Jim Royal and industrials editor/analyst Brendan Byrnes discuss topics around the investing world.
While mortgage REITs such as Annaly Capital, Armour Residential, and American Capital Agency have gotten all the press for their double-digit dividends, they're under pressure lately, as all have seen a sequential drop in their interest-rate spreads during the fourth quarter, resulting in declining dividends. Instead, Jim discusses a hidden stock that has yet to appear on most investors' screens because it's a recent IPO and a small-cap stock. But the new stock does pay a substantial dividend and could be a good play as the economy recovers, in contrast to the mortgage REITs.
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