More on CYS Investments' (CYS) special dividend: How does a mortgage REIT - which must pay out...

|About: CYS Investments, Inc. (CYS)|By:, SA News Editor

More on CYS Investments' (CYS) special dividend: How does a mortgage REIT - which must pay out nearly all of its earnings as dividends - salt away the money for a special dividend? At these high level of MBS prices, companies can sell holdings for rainy-day money such as this - it's how many mREITs maintain a dividend in the face of lower returns. The issue for CYS now - its slush fund is empty and returns may remain weak going forward. Shares +2% premarket.