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REITs with high dividend yields are particularly appealing for long term buy & hold, because the cash payout by itself provides a good margin of safety for the investment. When investing in mature companies, reinvest dividend is a commonly adopted strategy to increase long term returns. If the real estate market warms up further, when timed correctly, investors can enjoy both share price increase as well as dividend payout.

Given the combination of good dividend payout (at least 8%) and generally great financial health, these REITs are serious candidates to consider for your portfolio.

American Capital Agency Corp. (AGNC) has a market cap of $9.76 billion. The dividend is very generous at 15.50%. American Capital Agency invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by government-sponsored entities or by the United States government agency. The company funds its investments primarily through short-term borrowings structured as repurchase agreements. Given that its price is only 4.12% lower than its 52-week high, the overall market sentiment appears positive. American Capital Agency Corp. has a very healthy operating margin of 93.39%. The trading volume has been stable recently. I like what I see.

Apollo Residential Mortgage, Inc. (AMTG) has a market cap of $473.00 million. This company pays out a nice dividend of 15.50%. Apollo Residential Mortgage offers agency and non-agency residential mortgage-backed securities. Its stock price is about 0.46% below its 52-week high, usually a positive technical indicator on the company. I like Apollo Residential Mortgage Inc.'s operating margin of 51.89%, a good sign for the company's financial health. Recently, the stock is not traded actively.

Anworth Mortgage Asset Corporation (ANH) has a market cap of $956.22 million. This company pays out a nice dividend of 12.10%. Anworth Mortgage Asset 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. Its price is not very close to either 52-week high or low. The high PEG ratio suggests that the market expectation may be too high to become reality. I like Anworth Mortgage Assetration's operating margin of 89.27%, a good sign for the company's financial health. The recent trading volume is about average. This stock is OK for your watch list, but not particularly appealing based on its overall financial records.

Apollo Commercial Real Estate Finance, Inc. (ARI) has a market cap of $336.73 million. This company pays out a nice dividend of 9.90%. Apollo Commercial Real Estate Finance originates, acquires, invests in, and manages performing commercial first mortgage loans, commercial mortgage-backed securities, mezzanine financings, and other commercial real estate-related debt investments. Given that its price is only 1.50% lower than its 52-week high, the overall market sentiment appears positive. Stable trading volume suggests a relatively calm market. This stock is OK for your watch list.

Chimera Investment Corporation (CIM) has a market cap of $2.59 billion. This company pays out a nice dividend of 16.10%. Chimera Investment Corporation invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its price is only around 5.88% off its 52-week low. While the stock appears it might have bottomed. Investors should proceed with caution. The PEG ratio is way above one, something to be cautious about. It doesn't appear to be at a point of entry yet. Watch.

Colony Financial, Inc. (CLNY) has a market cap of $571.78 million. This company pays out a nice dividend of 8.10%. Colony Financial focuses primarily on acquiring, originating, and managing commercial mortgage loans, and other commercial real estate-related debt investments. Given that its price is only 7.06% lower than its 52-week high, the overall market sentiment appears positive. The high PEG ratio suggests that the market expectation may be too high to become reality. I like Colony Financial Inc.'s operating margin of 71.55%, a good sign for the company's financial health. Average trading volume is observed lately.

Capstead Mortgage Corp. (CMO) has a market cap of $1.31 billion. This company pays out a nice dividend of 11.40%. Capstead Mortgage 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. Given that its price is only 1.89% lower than its 52-week high, the overall market sentiment appears positive. The high PEG ratio suggests that the market expectation may be too high to become reality. I like Capstead Mortgage's operating margin of 91.05%, a good sign for the company's financial health. Average trading volume is observed lately.

Crexus Investment Corp. (CXS) a market cap of $792.25 million. This company pays a handsome dividend of 10.40%. CreXus Investment, through its subsidiaries, operates as a commercial real estate company. It acquires, manages, and finances commercial mortgage loans and commercial real estate debts, commercial real properties, commercial mortgage-backed securities, other commercial real estate-related assets, and agency residential mortgage-backed securities. Its price is not very close to either 52-week high or low. I like Crexus Investment's operating margin of 86.34%, a good sign for the company's financial health. Average trading volume is observed lately. I would watch this stock with caution.

Gladstone Commercial Corp. (GOOD) has a market cap of $179.50 million. This company pays out a nice dividend of 9.10%. Gladstone Commercial engages in investing in and owning net leased industrial and commercial real properties, and making long-term industrial and commercial mortgage loans. The company leases its real estate properties to small businesses, as well as to large public companies. Its price is not very close to either 52-week high or low. Gladstone Commercial Corp. has a very healthy operating margin of 51.42%. Stable trading volume suggests a relatively calm market. A lot of caution should be used while watching new progress.

Hatteras Financial Corp (HTS) has a market cap of $2.84 billion. This company pays a handsome dividend of 12.30%. Hatteras Financial It invests in fixed-rate and adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by the United States Government agency or by the United States Government-sponsored entity, and the Federal Home Loan Mortgage Corporation. Given that its price is only 0.95% lower than its 52-week high, the overall market sentiment appears positive. I like Hatteras Financial's operating margin of 93.51%, a good sign for the company's financial health. The recent trading volume is below average.

MFA Financial, Inc. (MFA) has a market cap of $2.74 billion. The dividend is generous at 12.30%. MFA Financial 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. Given that its price is only 6.95% lower than its 52-week high, the overall market sentiment appears positive. The high PEG ratio suggests that the market expectation may be too high to become reality. MFA Financial, has a very healthy operating margin of 90.85%. The trading volume has been stable recently.

Medical Properties Trust Inc. (MPW) has a market cap of $1.21 billion. This company pays a handsome dividend of 8.80%. Medical Properties Trust acquires, develops, and invests in healthcare facilities; and leases healthcare facilities to healthcare operating companies and healthcare providers. The company also provides mortgage loans to healthcare operators, as well as working capital and other term loans to its tenants/borrowers. Its price is near the bottom, at around 9.30% off its 52-week low. The PEG ratio is slightly above one, not much a concern of valuation. Medical Properties Trust Inc.'s operating margin of 54.75% is healthy, but not particularly high among REITs. Average trading volume is observed lately.

Newcastle Investment Corp. (NCT) has a market cap of $776.11 million. The dividend is generous at 12.60%. Newcastle Investment invests in and manages a portfolio consisting primarily of real estate securities. The company’s portfolio of real estate securities includes commercial mortgage backed securities, senior unsecured debt issued by property REITs, real estate related asset backed securities, and agency residential mortgage backed securities. Newcastle also owns interest in loans and pools of loans. In addition, it owns interests in operating real estate. Its price is not very close to either 52-week high or low. The PEG ratio is way above one, something to be cautious about. Newcastle Investment's operating margin is 82.21%. Stable trading volume suggests a relatively calm market.

Annaly Capital Management, Inc. (NLY) has a market cap of $16.69 billion. The dividend is generous at 13.00%. Annaly Capital Management engages in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Its stock price is about 8.83% below its 52-week high, usually a positive technical indicator on the company. The PEG ratio is way above one, something to be cautious about. Annaly Capital Management has a very healthy operating margin of 70.59%. The trading volume is relatively normal.

NorthStar Realty Finance Corp. (NRF) has a market cap of $597.39 million. The dividend is generous at 11.60%. NorthStar Realty Finance invests in real estate debt business, which acquires, originates, and structures debt investments secured primarily by income-producing real estate properties; real estate securities business that invests in commercial real estate debt securities, including commercial mortgage backed securities, REIT unsecured debt, and credit tenant loans; and net lease properties business, which acquires properties that are primarily net leased to corporate tenants. Its price is not very close to either 52-week high or low. NorthStar Realty Finance has a operating margin of 46.07%. Thinning trading volume suggests that trading interest in the company is waning.

PennyMac Mortgage Investment Trust (PMT) has a market cap of $616.25 million. This company pays a handsome dividend of 11.40%. Its stock price is about 4.50% below its 52-week high, usually a positive technical indicator on the company. I like PennyMac Mortgage Investment Trust's operating margin of 72.23%, a good sign for the company's financial health. Low recent trading volume can be negative or positive. It can be negative because it will be difficult for people to discover this company. It can be positive because ignored stocks tend to be undervalued.

Resource Capital Corp. (RSO) has a market cap of $459.33 million. The dividend is generous at 14.40%. Resource Capital operates as a specialty finance company that focuses primarily on commercial real estate and commercial finance in the United States. The company’s commercial real estate-related investments include first mortgage loans, first priority interests in first mortgage real estate loans, subordinate interests in first mortgage real estate loans, mezzanine loans, and commercial mortgage-backed securities. Its price is not very close to either 52-week high or low. I like Resource Capital's operating margin of 60.46%, a good sign for the company's financial health. The trading volume has been stable recently. I may put it on my watch list, but definitely not on top of the list.

Redwood Trust Inc. (RWT) has a market cap of $959.73 million. This company pays a handsome dividend of 8.30%. Redwood Trust engages in investing, financing, and managing real estate assets. The company’s investments include residential and commercial real estate loans; and securities backed by residential and commercial loans, including senior and subordinate securities. The senior securities are those interests in a securitization that have the first right to cash flows and are last to absorb losses; and subordinate securities are those interests in a securitization that have the last right to cash flows and are first in line to absorb losses. Its price is not very close to either 52-week high or low. The high PEG ratio suggests that the market expectation may be too high to become reality. Redwood Trust's operating margin is 53.62%. The recent trading volume is about average. Albeit the high yield, there aren't enough positive factors to buy this company yet.

Sabra Health Care REIT, Inc. (SBRA) has a market cap of $616.53 million. This company pays a handsome dividend of 8.10%. Sabra Health Care owns and invests in real estate properties for the healthcare industry. Given that its price is only 3.30% lower than its 52-week high, the overall market sentiment appears positive. The PEG ratio is way above one, something to be cautious about. I like Sabra Health Care REIT Inc.'s operating margin of 55.40%, a good sign for the company's financial health. Over the past ten days, Sabra Health Care REIT Inc. has seen significantly higher than average trading volume.

Starwood Property Trust, Inc. (STWD) has a market cap of $1.97 billion. This company pays out a nice dividend of 8.30%. Starwood Property Trust engages in originating, investing in, financing, and managing commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. It also invests in residential mortgage loans and residential mortgage-backed securities, as well as commercial properties subject to net leases. Its stock price is about 3.58% below its 52-week high, usually a positive technical indicator on the company. Thinning trading volume suggests that trading interest in the company is waning.

Two Harbors Investment Corp. (TWO) has a market cap of $2.22 billion. This company pays out a nice dividend of 15.60%. Two Harbors Investment focuses on investing in, financing, and managing residential mortgage-backed securities , residential mortgage loans, residential real properties, and other financial assets. Its stock price is about 6.33% below its 52-week high, usually a positive technical indicator on the company. Two Harbors Investment Corp. has a very healthy operating margin of 82.49%. Stable trading volume suggests a relatively calm market. The company looks appealing.

Whitestone REIT (WSR) has a market cap of $160.46 million. The dividend is generous at 8.50%. Whitestone engages in the investment and operation of retail, office, and warehouse properties located in the Houston, Dallas, San Antonio, and Phoenix metropolitan areas. Given that its price is only 4.38% lower than its 52-week high, the overall market sentiment appears positive. Whitestone's operating margin of 20.12% is low among REIT, possibly because it doesn't engages in derivative or mortgage transactions but instead owns properties. The trading volume is relatively normal.

Source: Dividend Champions: A Semi-Annual Review Of High Yield REITs