Many investors are worries about dividend cuts in this market as prices continue to fall and yields continue to climb. But, you can find a safe haven in these two stocks that have double-digit yields and plenty of cash flow growth to cover their dividend payments.

Market averages and individual share prices continue to decline as we move along into 2016. Most can say that this is not what they had expected for the New Year. For dividend-focused investors, however, the rising fear is that as share prices fall, yields increase and higher yields may indicate a pending dividend rate reduction. I keep pointing out to my dividend newsletter subscribers that a bear market takes down share values of all stocks. This means the good go down along with the not so good. To check on the safety of our dividend streams, we need to go back to the basics and determine where the dividend cash comes from.

I keep pointing out to my dividend newsletter subscribers that a bear market takes down share values of all stocks. This means the good go down along with the not so good. To check on the safety of our dividend streams, we need to go back to the basics and determine where the dividend cash comes from.

Finance REITs are one of the high-yield sectors falling hard. For many of the companies in the sector, there is a good reason for share values to fall. Those finance REITs that own leveraged portfolios of residential mortgage-backed securities (MBS) are caught in a profit-sapping interest spread squeeze as the yield curve flattens, and owners of shares in agency residential MBS owning finance REITs should fear possible dividend reductions. In the current rate environment, such cuts are almost inevitable.

However, also included in the finance REIT sector are a few companies with business models that will do fine or even thrive in a changing interest rate environment. Share prices of these companies have been driven down right along with their MBS time bomb owning cousins. To weed out the good finance REITs you need to understand how their businesses generate cash and make sure that the cash flow per share continues to grow and is adequate enough to cover the dividend. While official earnings reports for the 2015 fourth quarter won’t be released until late February, two of the better finance REITs have released preliminary results and those early numbers tell us that dividend rates are secure even as their share prices continue to drop.