ByChristopher F. Davis:

With the recent fears of pressure on mortgage real estate investment trusts (REITs) due to fears of increasing rates that would diminish profit margins, I have begun to share my thoughts on the space. Recall that a REIT is simply any corporation, trust or association that acts as an investment agent specializing in real estate and real estate mortgages under Internal Revenue Code section 856. The rules for federal income taxation of REITs are found primarily in Part II (sections 856 through 859) of subchapter M of chapter 1 of the Internal Revenue Code. The advantage of being a REIT is that the company is entitled to deduct dividends paid to its owners, and thus a REIT may avoid incurring all or part of its liabilities for U.S. federal income tax. To meet the qualifications, REITs are required to distribute 90% of their earnings to shareholders. A mortgage

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ByChristopher F. Davis:

Following American Capital’s (AGNC) dismal quarterly performance, I have been on a hunt for a replacement for this beloved dividend paying real estate investment trust [REIT]. For my followers not familiar with a REIT, a REIT is simply any corporation, trust or association that acts as an investment agent specializing in real estate and real estate mortgages under Internal Revenue Code section 856. The rules for federal income taxation of REITs are found primarily in Part II (sections 856 through 859) of subchapter M of chapter 1 of the Internal Revenue Code. The advantage of being a REIT is that the company is entitled to deduct dividends paid to its owners, and thus a REIT may avoid incurring all or part of its liabilities for U.S. federal income tax. To meet the qualifications, REITs are required to distribute 90% of its earnings to shareholders.

Although I still like AGNC,

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