By Investment Underground:

REITs tend to deliver predictable and stable earnings. Their earnings come from the spread between the yield on their assets and cost of borrowing. With the Fed holding off on tightening monetary policy for now, REITs are a worthwhile play on the current low interest environment. Intelligent investors should note that should short term interest rates rise, earnings will be affected and hurt sentiment towards these stocks.

Listed below are 6 REITs worth considering:


Armour Residential REIT


(ARR)

Armour Residential is focused on investing in mortgage backed securities guaranteed by US Government chartered entities such as Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and Ginnie Mae. Armour Residential had a great 1st quarter in 2011. Net Revenues were $10 million vs $592,112 for Q1 2010. Net Income was $8.6 million vs $305,833. A highlight is its balance sheet, which is free of long term debt.

Current dividend yield is 19.5%. On

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