For the taxes have an enormous impact on investors long-term results to nominal tax rates are often unhelpful in understanding the real tax implications of transactions to the example, Warren Buffett's famously self-disclosed 17.7% tax rate counterintuitively indicates his income bears a higher tax rate than his secretary in the tax impact of dividends is especially worth considering when the company declaring them is regulated as a REIT and subject to taxation at rates that do not depend on the "qualified dividend" rate cap of 15%.

The American Capital Ltd is the external manager of two publicly-traded mREITs to the american Capital Agency Corp of a AGNC was launched in 2008 and invests exclusively in agency-backed mortgage investment in american capital mortgage investment (MTGE) was launched in August of 2011 and is permitted to invest in mortgage products without guarantees by an agency of the U.S. government. Both funds pay a dividend of approximately 16%.

And the each has grown not only through reinvestment of income to through the issuance of additional common shares at prices at or above net asset value to the case of American Capital Agency in the issuance of a preferred to Real Estate Investment Trust ("REIT") is able to avoid paying income taxes on income paid to the shareholders as dividends if it distributes at least 90% of its taxable income to shareholders.