Retirees simply need income. In this article, I want to highlight 3 income stocks that yield 11.55% and higher. I believe retirees should perform their due diligence. Retirees will find that a Wells Fargo (WFC) 40 basis point Certificate of Deposit, for 26 weeks, can be replaced with 3 11.55% and higher agency mortgage real estate investment trusts (mREITs) yields. The underlying assets are implicitly guaranteed by the U.S. Federal Government. The government can provide this implicit guarantee due to their power of printing money.
My dear friend, Robert Zimmerman, told me in all sincerity years ago, "But I'll know my song well before I start singing..". His message was ensure you know what is going on with your money.
CYS Investments (CYS)
CYS Investments, per their 1st quarter SEC 10Q, had a book value per share of $13.14. This represents a 3% premium to today's closing price. CYS went ex dividend on June 21st.
CYS Investments is an agency mREIT which has provided outstanding returns to investors. Currently the yield is 14.78% per year.
Annaly Capital Management, Inc. (NLY)
Annaly, per their 1st quarter SEC 10Q, had a book value per share of This represents a 3% premium to today's closing price. Today was Annaly's ex dividend date. The yield is 13.03% per year, which is higher than Capstead Mortgage.
Capstead Mortgage Corp. (CMO)
Capstead Mortgage, per their 1st quarter SEC 10Q, reported a 1st quarter book value of $13.04. Although Capstead went ex dividend today, the stock ended up for the today. This represents a positive sentiment. I recommend investors buy Capstead and benefit by the oldest mREIT in existance. The 11.55% yield is tremendous and offers way for retail investors to boost their dividend income.
mREIT Portfolio Allocation
If common stocks are yielding 2-4% percent, a 15% dividend yielder is a welcome addition to the portfolio.
I recommend every investor seek the counsel of an independent advisor. If you choose to do this on your own, do your homework. CYS Investments, Annaly Capital, Capstead Mortgage are all all agency mREITs. They yield 11.55% and up.