By Ian Hoffman
The below is the result of a simple screen I performed that was meant to identify potentially overlooked and undervalued, high-dividend yielding equities in the REIT space. The dividend yields, again, are quite remarkable.
1. Two Harbors Investment Corp (TWO)
Annual Dividend Yield: 16.13%
Two Harbors operate as a real estate investment trust (REIT), which focuses on investing in, financing and managing residential mortgage-backed securities, and related investments.
6-Month Chart
Its stock currently trades around $9.95 with 174.60M shares out, giving it a market cap of roughly $1.73B. The average daily volume according to NASDAQ is 4.59M shares and the consensus analyst 12-month price target is $11, with the rosiest estimate being $11.50.
2. CYS Investments, Inc (CYS)
Annual Dividend Yield: 14.73%
CYS Investments is a specialty finance company that was created with the objective of achieving consistent risk-adjusted investment income.
6-Month Chart
Its stock currently trades around $13.58 with 107.94M shares out, giving it a market cap of roughly $1.46. The average daily volume according to NASDAQ is 2.18M shares and the consensus analyst 12-month price target is $14, with the rosiest estimate being $15.
3. American Capital Agency (AGNC)
Annual Dividend Yield: 19.06%
American Capital Agency is a REIT, which invests in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis.
6-Month Chart
Its stock currently trades around $29.40 with 183.62M shares out, giving it a market cap of roughly $5.41B. The average daily volume according to NASDAQ is 3.8M shares and the consensus analyst 12-month price target is $30, with the rosiest estimate being $34.
4. Invesco Mortgage Capital (IVR)
Annual Dividend Yield: 16.46%
Invesco Mortgage is a REIT primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets.
6-Month Chart
Its stock currently trades around $15.85 with 115.39M shares out, giving it a market cap of roughly $1.83B. The average daily volume according to NASDAQ is 1.61M shares and the consensus analyst 12-month price target is $16.25, with the rosiest estimate being $23.
5. Annaly Capital Management, Inc. (NLY)
Annual Dividend Yield: 13.5%
Annaly Capital Management owns, manages and finances a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other securities representing interests in the obligations backed by pools of mortgage loans.
6-Month Chart
Its stock currently trades around $17 with 970.08M shares out, giving it a market cap of roughly $16.44B. The average daily volume according to NASDAQ is 11.91M shares and the consensus analyst 12-month price target is $17.75, with the rosiest estimate being $20.
The dividend yields on the above names alone make them intriguing, but a deeper delve into their filings and financials reveal that some have better histories and some have better long-term prospects. Just some food for thought.
