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Chimera Investment is Among the Companies in the Mortgage REITs Industry With the Highest Earnings Yield (CIM, ARR, AGNC)

Published on Tue, 03/26/2013 - 10:28
By Adrienne Chilton

Below are the three companies in the Mortgage REITs industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.

Chimera Investment (AMEX:CIM) is highest with an earnings yield of 16.2%. Chimera Investment Corporation is a specialty finance company. The Company invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes.

Chimera Investment (AMEX:CIM) is currently priced 15.4% above its average consensus analyst price target of $2.78. The stock should find initial support at its 50-day moving average (MA) of $3.04 and further support at its 200-day MA of $2.70.

Armour Residential REIT (NYSE:ARR) is next with an earnings yield of 15.2%.

Finishing up the top three is American Capital Agency (NASDAQ:AGNC), with an earnings yield of 13.7%.

By Adrienne Chilton
achilton@fnno.com