Categories: Dividends

15.25 Percent Yield Is Courtesy of the Fed

15.25 Percent Yield Is Courtesy of the Fed (TheGlobalGuru.com)

Earlier this month, Federal Reserve Bank of Chicago President Charles Evans said the Fed would keep rates near zero well into 2015 due to the country’s uneven recovery. And he immediately became the best buddy of investors in the iShares Mortgage Real Estate Capped ETF (REM). Unlike REITs that generate income by managing properties and collecting rent, REM profits on the spread between the short-term interest rate and income from mortgage-backed securities. So thanks to Evans, REM’s impressive 15.25 percent yield looks to be a solid play into the next year.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.