Following last week's $600 billion "QE2" announcement, consensus is that interest rates will remain at exceptionally low levels for the foreseeable future. When interest rates are low investors tend to put their money into dividend paying stocks. A popular dividend play is via Real Estate Investment Trusts or "REITs" for short. To be classified as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. While this makes paying its dividend more volatile, given the current economic conditions, REITs continue to be appealing. The Bedford Report examines the outlook for diversified REITs and provides research reports on Chimera Investment Corporation (NYSE: CIM) and American Capital Agency Corporation (NASDAQ: AGNC). Access to the full company reports can be found at:

www.bedfordreport.com/2010-11-CIM

www.bedfordreport.com/2010-11-AGNC

This year REITs have been one of the better performing segments of the financial sector. The Vanguard REIT Index ETF which holds nearly 100 different REITs, has soared an impressive 31% in contrast to the Financial sector for the S&P 500, which is up a mere 8.1% this year.

REITs earn their money on the spread between low-interest short-term borrowing and purchasing high-interest long-term securities. Several analysts believe that as long as interest rates remain low -- which is all the more likely after the QE2 announcement -- REITs should continue posting strong earnings, which in turn is likely to keep those hefty dividends stable.

The Bedford Report releases regular market updates on various REITs so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Presently, Chimera pays an annual dividend of 0.72 for yield of about 17.80%. For the most recent quarter Chimera reported that core earnings were higher year-on-year- at $139.0 million or $0.16 per share compared with $85.9 million or $0.13 per share last year.

American Capital Agency pays an annual dividend of 5.60 for a massive yield of around 19%. While high yielding dividend paying stocks are appealing, be forewarned that companies can cut, slash, or suspend dividends at any time, often without notice.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer

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