11.52% Dividend Payer Crexus Investment Corp. Is Showing Strength

Crexus Investment Corp. (CXS) is a REIT that acquires, manages, and finances commercial mortgage debt. It also acquires some Agency RMBS. It is externally managed by the Fixed Income Discount Advisory Company (FIDAC), a subsidiary of Annaly Capital Management Inc. (NLY). Unlike many of the other mortgage REIT companies, it raised its dividend in Q3 ($0.32/share) versus Q2 ($0.27/share) in 2012. This is a big indicator that the commercial mortgage business is doing better than the Agency RMBS market under the current market conditions. Agency RMBS companies have been lowering their dividends. CXS is a micro/small cap company with a market cap of only $851.36 million; and it apparently uses little or no leverage. Therefore it is truly a small company by mortgage REIT standards. This may make it more susceptible to market conditions. However, it may also make it a much safer bet if the US economy does badly... Read more