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Our recommendation to investors - always buy value. Sometimes the price may go down, but the value in your investment never does.

In today's market investors are looking for a good return on their investment. High dividends are sought out as an income producing investment that can supplement your income or help build with reinvesting. Today's REITs can produce a high yield ranging from 5% up through 20+%. What investors really need to know is how to identify the REITs with value and can sustain the changes in the market.

One of the benefits of owning a REIT includes a REIT pays no corporate tax in exchange for paying out strong, consistent dividends. Taxes are paid only at the individual shareholder level. With no corporate tax more money is paid to the investors. REITs are registered and regulated by the Securities and Exchange Commission and adhere to higher standards of corporate governance, financial reporting and information disclosure. Their quarterly reports and Form 10-Q are required by the SEC.

The fundamental environment for REITs today is very sound and when interest rates do begin to rise, the REITs with the best fundamentals will be in a better position to capture the enhanced value creation. For income investors, the most challenging task to consider is the sustainability of dividends.

All of the REITs are subject to Interest Rate Risk. If the interest rates go up, the money tied up in current investments would earn a lower interest and cause the value of the stock to go down. This may also cause the company to pay more for borrowing money and impact the income and bottom line profits.

The companies we highlight here are Javelin Mortgage Investment Corp., Armour Residential REIT and Apollo Residential Mortgage Inc. We believe these companies are strong enough to provide dividends now and into the future when the interest rates increase. Here are the details of the REITs we think have value and recommend our investors to take a hard look.

Javelin Mortgage Investment Corp. (NYSE: JMI)

Today's share price: $11.94 opened Tuesday, August 27, 2013

Year low and high: $10.72 - 20.20

Dividend, yield and last payout: $0.23 (monthly), 23.8% (annualized), August 13, 2013

Longevity of dividend: Since November 15, 2012.

Market cap: $156.5 million

Business activity: Javelin Mortgage Investment is engaged in investing primarily in hybrid adjustable rate, adjustable rate and fixed rate mortgage backed securities and mortgage loans. Some of these securities are issued or guaranteed by a U.S. Government-sponsored entity or guaranteed by the Government National Mortgage Administration and other securities backed by residential and/or commercial mortgages. Javelin may also invest in collateralized commercial mortgage backed securities and other mortgage related investments, including mortgage loans, mortgage related derivatives and mortgage servicing rights. Javelin is externally managed by ARMOUR Residential Management LLC (ARRM), pursuant to a management agreement.

Strength of operations: Javelin Mortgage Investment Corp. has a very solid business plan and execution. Year-to-date stock price is down 39.29%, which demonstrates it reacted to the Fed's announcement of reducing/ending QE3 sometime in the future. Javelin's current operations are creating profits each month and a healthy return for investors. The dividend rate is not expected to drop from its latest business reports and projections.

Recommendation: JMI is rated as a buy. We like stocks with a solid profit each quarter, and this stock pays a monthly dividend. We like stocks that pay 10% or better in dividends and JMI is currently paying a 23.8% return on your investment (annualized). Take the dividend and if you fear a reduction in dividend or the price of the stock, you can hedge the value of your investment each month.

Armour Residential REIT (NYSE: ARR)

Today's share price: $4.04

Year low and high: $3.74 - 7.71

Dividend, yield and last payout: $0.07 (monthly), 21.1% (annualized), August 13, 2013

Longevity of dividend: Since Jan 2011, dividend has decreased from high of $.36 to current amount of $0.07.

Market cap: 1.4 billion

Business activity: Armour invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities. These securities are issued or guaranteed by a U.S. Government-sponsored entity, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. From time to time, a portion of Co.'s portfolio may be invested in unsecured notes and bonds issued by U.S. Government-chartered entities, U.S. Treasuries and money market instruments, subject to certain income tests the Company must satisfy for its qualification as a real estate investment trust.

Strength of operations: Armour reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, Armour increased its bottom line by earning $0.97 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 24.7% in earnings ($0.73 versus $0.97).

Recommendation: We believe Armour is a buy due to its performance over the last year. The stock price has dropped in reaction to the Fed's announcement it may decrease or stop QE3 purchases of government bonds in the near future. With the stock price under $4, and the dividend paid monthly, we see a great opportunity for the investors to reap a profit over 10% in the near term and extending into 2014.

Apollo Residential Mortgage Inc (NYSE: AMTG)

Today's share price: $15.19

Year low and high: $14.30 - $23.59

Dividend, yield and last payout: $0.70 (quarterly), 18.44%, June 26, 2013

Longevity of dividend: December 2011

Market cap: $486 million

Business activity: Apollo Residential Mortgage is a holding company. Apollo conducts business primarily through its ARM Operating, LLC subsidiary and its other operating subsidiaries. Apollo is primarily engaged in the business of investing, on a leveraged basis, in residential Agency and non-Agency residential mortgage-backed securities (RMBS). The Agency RMBS includes pass-through securities (whose underlying collateral included only fixed-rate mortgages), as well as Agency interest-only and Agency inverse interest-only securities, which receive some or all of the interest payments, but no principal payments, made on a related series of Agency RMBS, based on a notional principal balance.

Strength of operations: In Q2 2013 it sold $2.2 billion of its Agency RMBS, and it purchased $186.5 million of non-Agency RMBS. This changed Apollo's RMBS portfolio to an estimated value of $2.6 billion and its non-Agency RMBS portfolio to an estimated value of $751 million as of June 30, 2013. Apollo mitigated some of its interest rate risk by selling a large portion of its Agency RMBS. Plus it bought more non-Agency RMBS, which should go up in value as the US economy recovers. The company's expectation is that this will occur at the same time the interest rates increase, offsetting any losses and providing stability.

Recommendation: Apollo Residential Mortgage Inc. is a solid company with a sharp business plan and has taken defined action for the future. The dividend of 18% is worthy of consideration and a buy and hold will only pay profitable dividends into the future.

Source: High-Paying REITs Worth A Hard Look

Additional disclosure: Each of the companies websites have their last quarterly reports and SEC filings.