Up today, Foolish analysts Andrew Tonner and Anand Chokkavelu discuss one potential hidden threat to mortgage REIT's profits.
As the New York Times recently reported, the interest rate spread for banks is twice the level it was in 2007. This can be great for banks, as it creates an environment for higher profits. But, as Anand points out, REITS sit downstream from banks, so if banks spreads are increasing, then REITS are decreasing. It's a zero sum game that right now seems tipped in the banks favor. This has implications for popular REITS like American Capital Agency (Nasdaq: AGNC ) and Annaly Capital (NYSE: NLY )
If this reality has you worried about REIT's fat dividends, have no fear! The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.