Can These REITs Keep Paying Giant Dividends?

By Joel Obaseki Investors seeking high yield dividends have found a haven in REITs; with high yields of 12% or higher in some circumstances, the industry has been lucrative for investors. Inevitably, REITs cannot continue to offer high yields, so we’ll take a look at 5 high yielding REITs and determine whether or not they can continue paying such appealing dividends. Annaly Capital Management (NLY): Shares are currently trading midway between its 52 week low and high of $14.05 and $18.79 respectively. While trading in the range of $16.25, investors earn a 14.5% return from dividends alone. Annaly has a current market cap of $15.8 billion, making it one of the largest REITs on the market; nevertheless the company is anticipated to report a net loss for Fiscal year 2011, much of which is attributed to an unrealized net loss on investments. As of September 31st 2011, the company reported a net loss of $113.8 million (-0.14 per share), compared to a profit of $35 million (.06 per share) in 2010. Despite the negative earnings, the company has grown revenue (interest income) 35% in the first nine months compared to the same periods in 2010, paired with a favorable market environment,…