Capstead Mortgage Corp (CMO)

Just the phrase "real estate finance" is probably enough to scare away 90% of the folks in the market today. Maybe CMO seems so grossly undervalued precisely because few FOOLS will even look at it. OK, OK, I confess; I'm a sucker for a huge dividend when it looks sustainable. Government backing of CMO's assets, plus the company's navigation record through our current financial hurricane, have convinced me that it's reasonably safe to sit here and take that 16% annual divvy until I find some better use for my money.

As real,estate prices firm CMO will grow.

great income and growth potential in the reit market

Mortgage REIT that invests in agency securities backed by a U.S Gvt Agency (such as GNMA) or a U.S. Government-sponsored entity (such as the Federal National Mortgage Association, or FNMA, and the Federal Home Loan Mortgage Corporation, or FHLMC). As long as interest rates for borrowing remain low, this will be a terrific dividend yield.

msnmoneycentral:8 and navallier.investorplace:A

paid out a dividend of $0.56

Mortgage company will rebound in improved economy.

Inspite of ARMs in their portfolio, they dont stand to lose money; unless govt's implicit backing is perceived gone. So, it probably does deserve a small place in a portfolio? Who knows. But it surely deserves an outperform call on CAPS.

div

Huge yield. Can it be sustained?

dividend boosted, low p/e

I screened for high profit margins as well as high return on equity between companies in the 500m- 1B capitalization rate, this company came up, I think it's a good REIT, very speculative on my part, but considering it pays out a 20% dividend and has high ROE and high profit margins, it's obviously not losing money on a day to day basis.

Simple business plan, and now that the guberment has pretty much backed Fannie and Freddie Mac, that takes away the credit risk of the bonds these guys bought. Now that funding is almost nothing, spread short increase, meaning bigger dividend. Only downside is increase in prepay speed, but I think that is overblown.

probably early due to a late santa/obama rally coming... but with snp500 going to 500 over the next year, this should go down with it

All their loans are govt backed, high dividend yield, money suply being vastly expanded by govt and fed. Low p/e. High div yield will keep you from losing money until capital appreciation returns. I may never sell this one after getting it at this price!

too much leverage and it must come down. I suspect they will raise capital via an equity offering

CMO will continue to beat the S&P, it's been doing it the passed year, despite the economic downturn this year, and will continue to do so.

I simply used the screener to identify 1-star companies with the highest 52-week gain. The 1-star rating should mean they are bad companies and the 52-week gain should mean they are overpriced. We’ll see how it works!

Increased divi on June 12th. Divi payout now at 20%. Bullish sign to increase divi in this environment.