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Mortgage REIT Stocks Provide High Dividend Yields


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Looking For High Dividend Yields?  Look at Mortgage REIT Stocks

Mortgage REIT StocksInvestors seeking high yielding stocks in the current low interest rate environment should consider mortgage REIT stocks, which provide comparatively high dividend yields that approach and in some cases exceed 10 percent.  A mortgage REIT is a Real Estate Investment Trust that generates a majority of its revenues from mortgage-related activity, such as underwriting or selling mortgages.  Since they are organized as REITs, Mortgage REITs are required by federal law to distribute at least 90% of their annual income to shareholders as dividends.
High Dividend Yields

Because mortgage REITs tend to earn a lot of money, many of them are big dividend payers as well, which means high annual yields for stockholders.  Investors that are tired of seeing the buying power of their savings shrink in low yielding savings and money market accounts that earn less than 1 percent annual interest may want to learn more about high yielding mortgage REITs.  With real world inflation averaging between 2 percent to 4 percent per year, investors that want to grow their investments beyond the rate of inflation and avoid the loss of buying power, need to think outside of the box of traditional interest earning investing.  Mortgage REITs are one of those outside of the box interest earning investments that provide returns well ahead of inflation, and can be considered to earn a high annual rate of return on investments.

List of Mortgage REIT Stocks That Provide High Dividend Yields

Mortgage REITsThe following is a list of mortgage REIT stocks that pay relatively high annual interest yields in the form of quarterly dividends.  The annual interest yields provided with this list of mortgage REIT stocks are current yields, which can change over time, as the companies increase or decrease their dividends.

  • Annaly Capital Management Inc (NYSE:  NLY) currently pays a $1.20 annual dividend with an annual yield of 10.30%.  The company owns a portfolio of real estate related investments in the United States and makes commercial mortgage loans and is involved in other commercial real estate businesses.
  • American Capital Agency Corp .(NASDAQ:  AGNC) currently pays a $2.60 annual dividend with an annual yield of 11.00%.  The company invests in residential mortgage pass-through securities and collateralized mortgage obligations, which have principal and interest payments that are guaranteed by the federal government.
  • NorthStar Realty Finance Corp. (NYSE:  NRF) currently pays a $1.00 annual dividend with an annual yield of 5.90%.  The company is a commercial real estate (CRE) investment and asset management company.
  • Starwood Property Trust, Inc. (NYSE:  STWD) currently pays a $1.92 annual dividend with an annual yield of 7.90%.  The company originates, acquires, finances, and manages commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and commercial real estate-related debt investments in the United States and Europe.
  • Two Harbors Investment Corp (NYSE:  TWO) currently pays a $1.04 annual dividend with an annual yield of 10.00%.  The company invests in, finances, and manages residential mortgage-backed securities (RMBS), residential mortgage loans, mortgage servicing rights, and other financial assets.
  • Chimera Investment Corporation (NYSE:  CIM) currently pays a $0.36 annual dividend with an annual yield of 10.80%.  The company invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and various other asset classes.
  • Colony Financial, Inc. (NYSE:  CLNY) currently pays a $1.44 annual dividend with an annual yield of 6.30%.  The company focuses on acquiring, originating, and managing various real estate-related debt and equity investments.
  • MFA Financial, Inc. (NYSE:  MFA) currently pays a $0.80 annual dividend with an annual yield of 9.60%.  The company invests in residential agency and non-agency mortgage-backed securities (MBS).
  • Invesco Mortgage Capital Inc (NYSE:  IVR) currently pays a $2.00 annual dividend with an annual yield of 11.40%.   The company focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans.
  • New Residential Investment Corp (NYSE:  NRZ            )currently pays a $0.70 annual dividend with an annual yield of 10.80%.   The company focuses on investing in residential mortgage related assets.  It operates by servicing related mortgage assets, residential securities and loans, and other investments segments.

If you would rather invest in mortgage REIT funds to spread out the risk of mortgage REIT investing among a number of mortgage REIT companies, the following are some of the available mortgage REIT Exchange Traded Funds (ETFs).  The annual yields are as of publication of this article, and are subject to change.

  • iShares FTSE NAREIT Mortgage Plus Capped Index Fund (NYSE:REM) is an ETF that tracks the FTSE NAREIT All Mortgage Capped Index..  REM offers an annual yield of 15.15%.
  • Market Vectors Mortgage REIT ETF (NYSE:  MORT) is an ETF that tracks the Market Vectors Global Mortgage REITs Index.  MORT offers an annual yield of 12.65%.
  • UBS E-TRACS Mthly Pay 2x Mortg REIT ETN (NYSE:  MORL) is an ETF that tracks the Market Vectors Global Mortgage REITs Index at a designed rate of 200% (2X).  MORL offers an annual interest yield payout of 18.75%.

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