Boston, MA 07/08/2013 (wallstreetpr) – When you are used to betting on the dividend yield of a company there is no bet safer than specialty finance corporations that promise risk adjusted investment income like CYS Investment finance corp. The company maintains its dividend yield at 0.34 a share, for its recently reported quarter; amid a high volatility in the interest rate market which was expected to exert immense downward pressure on the book value of leveraged mREITS. The dividend will be paid out at 17th July 7, 2013, new options with August 17 expiry have already been afloat since June 24th , 2013.
CYS Investment Income Inc (NYSE:CYS)’s price to book value ratio also indicates a healthy sign because despite a good yield it is selling at less than its book value. The price to book ratio of 0.8 represents that the stock is resistant to book value erosion which is a healthy sigh. The consistent advance on earnings and profitability makes it a perfect pick for dividend hungry investors as REITS are bound by law to distribute 90% to their stakeholders.
The factors detailed above have gained the company’s stocks repeated upgrades by a range of different analysts. Many analysts contend that the interest rate volatility and dividend yield are temporary bubbles which cannot be expected to last long so investors should be skeptical of the temporary price moves. However CYS Investment Income Inc (NYSE:CYS) holds a stable business model and expectation of horizontal expansion within the industry. This is why the stock holds a highly recommended buy rating from at least four stock rating firms.
CYS Investment Inc (NYSE:CYS) is currently investing in hybrid and non-hybrid adjustable rate mortgage loans and collateralized agency residential mortgage backed securities in 17 markets across 13 states in the US. In the coming years the company’s externalized management structure will also give its earnings a further boost. The company is also bound to benefit from the high return sector of commercial mortgage based securities through its recently acquired CreXus Investment.
