Take Advantage of Obama's Interest Rate Plan with Dividends from Cypress
Cypress Sharpridge (CYS) Shows Stability by Turning Profit from Down US Economy
The US is showing signs of economic stability while countries around the world are not. President Barrack Obama and his finance posse continues to maintain their stance that the US is pulling out of the economic downfall. This, however, does not coincide with the continuing high percentage of unemployment and housing is still in a hole. Without hope of a quick fix on either, the Fed maintains their policy on keeping the interest rates low, thus leaving an opportunity for companies such as Cypress and its investors to capitalize on.
The only real attraction of owning CYS is that big fat 18.97% quarterly yield. With a promise of $0.60 per share dividend quarterly, the dividend in itself is the security many investors are looking for. The 18.97% yield is among the largest percentage in commonly traded stocks.
Mortgage REIT's such as Cypress are the biggest benefactors of the Fed's low-interest rate policies because they can easily borrow money for virtually nothing and flip a profit from the interest rate spreads of the mortgage securities they invest in. Because of their healthy return in such investments they are able to spread the bottom line to investors in the form of juicy returns.
Without any signs of a significant decrease in unemployment percentages in the near future, housing will remain a mess, thus keeping the Fed's hands tied on their low interest rate policies for at least two more years. Taking action on such events could seem criminal to some, is just plain smart to others. Many research analysts call the stock "risky" but with high reward potential. CYS has its game plan to continue to spread its juice to investors on a quarterly basis to liquidate its free flow of cash to prevent penalty and to retain its investors.
Since inception in 2009 CYS has maintained a general balance at between $11.50-14.00 per share. Fluctuations tend to come prior to and directly following disbursements of dividends.
Reuters and Credit Suisse Research maintain a buy/ outperform rating on CYS. Invest now and sell later when the Fed starts to raise interest rates again. For more information on high dividend stocks visit Stock Trot.
Published by Justin Hartley
A freelance writer of four years, Armywriter serves his country as a member of Active Duty Army while balancing his writing career and being a single parent. His writings have been pulled in by the USA Today... View profile
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