Many undervalued equities have been performing significantly well in this, what appears to be, very optimistic month of January. I have, in this vein, continued to target high-yielding equities with strong returns, low price to book ratios; and those that otherwise appear undervalued.
Below is a list of six real estate investment trusts (REITs) with over 10% dividend yield selling for less than book, sorted by dividend yield:
1. Chimera Investment Corporation (CIM), a diversified REIT, has a 14.67% dividend yield that is distributed to investors on a quarterly basis. The trust holds a $3.08 billion market cap with a 0.92 price to book ratio (P/B), 17.75% return on equity, 6.55% return on assets, and 90.53% operating margin.
2. MFA Financial, Inc. (MFA), a diversified REIT, has a 13.79% dividend yield that is distributed to investors on a quarterly basis. The trust holds a $2.58 billion market cap with a 0.96 price to book ratio (P/B), 12.47% return on equity, 3.00% return on assets, and 90.88% operating margin.
3. Anworth Mortgage Asset Corporation (ANH), a diversified REIT, has a 13.04% dividend yield that is distributed to investors on a quarterly basis. The trust holds an $862.75 million market cap with a 0.91 price to book ratio (P/B), 12.73% return on equity, 1.56% return on assets, and 89.87% operating margin.
4. PennyMac Mortgage Investment Trust (PMT), a residential REIT, has an 11.27% dividend yield that is generally distributed to investors on a quarterly basis. (Please note: dividend payouts for the trust are listed as irregular, but were paid on a quarterly basis throughout 2011.) The trust holds a $494.48 million market cap with a 0.93 price to book ratio (P/B), 12.17% return on equity, 6.48% return on assets, and 70.99% operating margin.
5. Crexus Investment Corp. (CXS), a diversified REIT, has a 10.82% dividend yield that is distributed to investors on a quarterly basis. The trust holds an $849.72 million market cap with a 0.93 price to book ratio (P/B), 11.96% return on equity, 10.17% return on assets, and 87.15% operating margin.
6. Apollo Commercial Real Estate Finance, Inc. (ARI), a diversified REIT, has a 10.75% dividend yield that is distributed to investors on a quarterly basis. The trust holds a $306.15 million market cap with a 0.92 price to book ratio (P/B), 6.64% return on equity, 2.50% return on assets, and 71.18% operating margin.
Disclaimer: All equities mentioned in this article are offered as speculation only. Any investment decisions made by the reader are, therefore, independent of this writing.
Continue to Part II: Closed-End Funds >>
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CIM, MFA, ANH, CXS, ARI, PMT over the next 72 hours.
