What About REITs?

• Posted by Greg Harmon
• on June 26th, 2014

I do not see many people talking about the mortgage REIT stocks lately. One That I have owned, Chimera, $CIM, just went ex-dividend today. The dividend yields have pulled in but this one still pays out over 11%. The stock pulled back today but by only about 1/10 of the dividend. This could be your opportunity to get involved. The chart below shows rising trend support since July 2013, that may come into play at about 3.09, or 10 cents below. Notice that the 200 day SMA is right there as well. With the RSI and MACD falling you might want to set a buy stop near that level as an entry. Mortgage rates may be going up, but they do not appear to be doing so any time soon. And with a stop in the $3 area to be certain the trend has reversed, even if it pulls back on the dividend to 5 or 7% it will still be well above most stocks in the market. There are other\s to look at in this space as well. American Capital Agency, $AGNC is another. Se what you can find.

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