Wednesday, January 15, 2014

CYS Investments Inc

My latest big investment towards trying to make better passive income for myself is CYS Investments Inc. It is a US stock dealing in MBS (Mortgage-backed Securities).

Of course in a rising interest rate environment, these mortgage companies which function like REITs are more exposed due to their gearing. However, CYS seems like it is well managed and can whether the gradual rise in US interest rates in time to come.

More importantly, it currently offers a dividend yield of 17%! And this is after it has recently been rerated and adjusted downwards! I have received one quarter's worth of dividends already and it is quite a chunk! After mandatory withholding tax, the yield works out to approximately 13%. Still far better than anything in my Singapore stock passive income portfolio.

Hopefully CYS can survive and pay good dividends for a long long time!


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