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These 3 Dividend Stocks Yield Investors 9.6% or More. Here's Which 1 I'd Buy First.

The Motley Fool

Companies that pay dividends display a commitment to shareholders and tend to have prudent capital management. These companies get tax treatment similar to real estate investment trusts (REITs) that requires them to pay out 90% of all taxable income to shareholders through dividends or other distributions.

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Annaly Capital Management's Total Return Won't Pay the Bills

The Motley Fool

Its revenue comes from the interest it collects on these bond-like securities, often called something like a collateralized mortgage obligation. It's pretty openly telling shareholders what they should be focusing on: total return. Image source: Getty Images. That's not to say Annaly is a bad mortgage REIT.

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This AI Stock May Be Down Lately, but I Am Holding for the Long Term

The Motley Fool

But with a HELOC, your home is the collateral backing the loan. It could take several years to gauge how successful Upstart is, encouraging shareholders to think with a long-term mindset. You can think of this as similar to a credit card -- it's a line of credit you can borrow against, creating a balance owed.

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Where Will Walgreens Boots Alliance Be in 3 Years?

The Motley Fool

That will further reduce its total assets, and reduce its financial flexibility to borrow money at an attractive interest rate, as it will have less collateral. And that's a long-term impediment to growth, as well as to returning capital to shareholders.

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A Bull Market Could Be Here: AGNC Investment Isn't the Bargain You Think

The Motley Fool

Mortgage REITs buy mortgages that have been cobbled together into bond-like securities, often called collateralized mortgage obligations (CMO). To be fair, even with property-owning REITs, investors are trusting that management will do the right thing for shareholders. Basically, you buy a property and rent it out.

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The Open Secret That Is AGNC Investment's Achilles' Heel

The Motley Fool

The big open secret here is that AGNC, like other mortgage REITs , makes liberal use of leverage in an effort to enhance shareholder returns. For starters, pledging basically means the company is using its mortgage bond portfolio as collateral for loans. billion agency securities (this is its mortgage bond portfolio).

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Monday Morning's Moves Have Carl Icahn Smiling

The Motley Fool

Rather than selling off shares of Icahn Enterprises and incurring capital gains taxes as a result, Icahn had pledged a huge portion of his Icahn Enterprises holdings as collateral. That might not be enough to put all of Hindenburg's concerns to rest, but it made shareholders a lot more comfortable with Icahn Enterprises.