Market Cap: $750 million
Dividend Yield: 11%
June 11 Open: $9.90
Crexus Investment (NYSE:CXS) is a real estate investment trust that is like Armour Residential (NYSE:ARR), but instead focuses on commercial mortgage loans and commercial mortgage-backed securities in addition to so called “agency” residential mortgages from Fannie and Freddie.
Like Armour, the dividend has just been reduced — from 35 cents in January to a quarterly payout of 27 cents in April — and be warned: Back in January 2011, the payout was only 22 cents for the quarter. But even if payouts fall back to 22 cents, the annualized yield still would be a juicy 9% at current valuations. This REIT is off about 5% since January.