Monday, July 18, 2011

7 Mortgage REITs That Yield Over 10%

Zvi Bar submits:

Investors seeking higher yielding income equities often consider or hold mortgage REITs. This is a review of the dividend payouts of the seven largest high-yield mREITs that I have found to be relatively liquid. I have charted and included the dividends paid within the last eight quarters, or since the recent general bottom in the market. I have also included their present yields and 2011-to-date performance.

These seven mREITS all yield between 10% and 20% percent annually, or somewhere between 2.5x to 4.5 times the yield of a 30-year U.S. Treasury. Several of the mREITs also only hold U.S. backed mortgages (with leverage), which carry an implied agency backing. Others hold higher risk paper, with lesser to no backing and far greater yields. By hook or crook, these mREITs currently offer income at a level above many layers of junk-rated bonds.

Click on charts below to enlarge:

1. American Capital

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