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High-yield investing can be interesting, and even more so in times of low interest rates. The M.O. of high-yield investing is to trade stocks with very high yields (as in, double-digits). Interested in REIT stocks? To find REITs with these traits, we ran a screen that honed in on companies undervalued by their fundamentals. We picked only those with positive analyst ratings. We came up with a short, but interesting list for you.

The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is that EPS is an accounting measure that could be potentially manipulated. Thus the P/E is only as good as the quality of the earnings.

The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below "break up" value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.

We first looked for REIT stocks with a very high yield (more than 10%). We then looked for businesses that appear undervalued from a price-multiple perspective (P/E<10)(P/BV<1). We then screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). We did not screen out any market caps.

Do you think these stocks have what it takes to grow? Use our list along with your own analysis.

Anworth Mortgage Asset Corporation (NYSE:ANH)

Industry:REIT - Diversified
Market Cap:$923.29M

Anworth Mortgage Asset Corporation has a Dividend Yield of 12.48%, a Payout Ratio of 104.15%, a Price/Earnings Ratio of 7.83, a Price/Book Value Ratio of 0.87 and an Analysts' Rating of 2.20. The short interest was 3.80% as of 06/08/2012. Anworth Mortgage Asset Corporation is a publicly owned real estate investment trust. The firm invests in the fixed income and real estate markets of the United States. It primarily invests in United States agency mortgage-backed securities issued or guaranteed by United States government sponsored entities including mortgage pass-through certificates, collateralized mortgage obligations, and other real estate securities, on a leveraged basis.

Capstead Mortgage Corp. (NYSE:CMO)

Industry:REIT - Diversified
Market Cap:$1.29B

Capstead Mortgage Corp. has a Dividend Yield of 12.44%, a Payout Ratio of 103.26%, a Price/Earnings Ratio of 7.77, a Price/Book Value Ratio of 0.92 and an Analysts' Rating of 2.20. The short interest was 4.58% as of 06/08/2012. Capstead Mortgage Corporation operates as a self-managed real estate investment trust. It invests in leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises or by an agency of the federal government. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

MFA Financial, Inc. (NYSE:MFA)

Industry:REIT - Diversified
Market Cap:$2.72B

MFA Financial, Inc. has a Dividend Yield of 12.60%, a Payout Ratio of 116.77%, a Price/Earnings Ratio of 8.76, a Price/Book Value Ratio of 0.98 and an Analysts' Rating of 2.10. The short interest was 3.83% as of 06/08/2012. MFA Financial, Inc., a real estate investment trust (REIT), invests in residential agency and non-agency mortgage-backed securities (MBS). Its MBS are secured by hybrid mortgages, adjustable-rate mortgages, and 15-year and longer term fixed-rate mortgages, as well as by mortgages that have interest rates that reset more frequently.

*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.