Although Newcastle Investment Corp. (NYSE: NCT) continues to post losses, the real estate investment trust's board voted to maintain a quarterly dividend of 25 cents a share. The dividend is payable on July 30 to shareholders of record as of July 7. This continued support of the dividend leaves the stock above a 15% yield as of the close yesterday at $6.67.

Newcastle reported a loss in funds from operations of $87.7 million, or $1.66 a share, in the April-June period, compared with a gain of $34 million, or 64 cents a share, in the year-earlier quarter. The company booked a $63.2 million charge related to its sub-prime securities portfolio. Revenue fell nearly 40% to $115 million from $191.9 million in the second quarter of 2007.

This is a highly leveraged company that is trying to ride out a turbulent real estate and financial market. It holds a wide variety of industrial, commercial and retail notes, with about 10% of the portfolio in residential notes. It has been hurt by the collapse of the commercial mortgage-backed securities market (CMBS), which does not show signs of recovery in the near term.

Negative earnings and high leverage are not inviting to most investors right now. But I think the company will survive and it is paying a very high yield and has been for quite some time.

I recently suggested the stock as one of a pool (Serious Money: Tempting fate with 10 financials) when it was $5.88; it is up 13.44% since then, way ahead of the overall market in just two weeks.

I do not recommend buying any one downtrodden stock but love the pool and so far (although short term) the concept is working.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of NCT.