Alright I have finally been convinced…a friend of mine has
talked some sense into me about ARR. I have been championing this stock for a
while now because of its fantastic monthly dividend. Well things have changed and the performance
of the stock over the past year has been lackluster compared to other
comparable stocks. I also own CYS and it
has completely outperformed ARR over the past year. I did some more research and the company is
sound. It only invests in real estate
that is backed by government lenders like Fannie Mae and Freddie Mac and the
company is run by a former investment strategist. Having a company run by someone who
understands things from an investor perspective makes me feel more secure
because it makes him more cognizant of market considerations.
Also the website of the company is a bit more professional
and there is more information about the company and its strategy than there is
on ARR’s website.
The downside with CYS is the fact that they pay quarterly
and the dividend yield is 2 percent less than ARR. Even still you are making around the same
amount of money.
Overall I think CYS is a better investment because of its
consistent equity growth versus ARR’s poor equity performance over the past
year. Even if ARR rebounds CYS will
already be ahead.
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