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3 Picks For 7.2% To 9.3% Dividend Yields


  • Our sector has been wild lately. The volatility means more developments we need to cover. I've got some catching up to do.
  • If you like shares with high dividend yields and inefficient markets, you're going to enjoy these opportunities.
  • These yields are pretty good today, but dividend rates could increase materially in a few years.
  • Looking for more investing ideas like this one? Get them exclusively at The REIT Forum. Learn More »

Dollar Seedling - Growth Concept - Plants On Bills In Increase

3 picks to help Seeking Alpha readers grow their wealth.

RomoloTavani/iStock via Getty Images

Get ready for charts, images, and tables because they are better than words. The ratings and outlooks we highlight here come after Scott Kennedy’s

All of our trades are shared with subscribers in real time along with articles highlighting the top opportunities in the sector before we purchase them. 

This article was written by

Colorado Wealth Management is a REIT specialist who began his decades-long investment career in a family-owned realtor office before launching his own company and embracing his drive for deep-dive REIT analysis. He holds an MBA and has passed all 3 CFA exams. He focuses on Equity REITs, Mortgage REITs, and preferred shares.

He leads the investing group The REIT Forum. Features of the group include: Exclusive REIT focus analysis, proprietary charts and data models, real-time trade alerts posted multiple times a month, multiple subscriber-only portfolios, and access to the service's team of analysts and support staff for dialogue and questions on the REIT space. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNCO, CIM-A, ARR-C, DX-C, NRZ-D, AGNCP, MFA-C, NYMTZ, TWO-B, NRZ, SLRC, AAIC, PMT, ARCC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Colorado Wealth Management Fund and Scott Kennedy are supporting contributors for The REIT Forum. Our ratings and outlooks will often overlap. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members. I have an indirect conflict of interest with ABR and STWD. Neither I, nor any contributor for The REIT Forum, will provide investment advice, reply to questions, or engage in discussions regarding these two mREIT stocks.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (41)

I was looking at AGNC preffered, I was wondering why there price never seems to drop with the stock. Maybe I just dont get preffereds. Preffered are after all common stock with just a dividend right?
@sky4it2012 Common stock can cut or raise the dividend and its price moves accordingly. Preferred stock can't, it pays steady dividend unless there is a total washout. So different factors move the price. Actually cutting the common dividend can be beneficial for the preferred if the company is lowering risk by doing so.

The preferred stays level on this stock, but over the last 10 years the commons stock is dreadful.

Im just looking at a bond fund because I got all stocks

But thank you
Thanks for this article. Would you consider swapping either AGNCP or ARR-C for NRZ-C at current prices?
Colorado Wealth Management Fund profile picture
@toromi I like all 3 of those shares currently.
@Colorado Wealth Management Fund Thanks for the reply. I do too, but I currently only have room for two of them. :-)
What's up with the FBRE-PE (the old Capstead preferred) Just seems to be languishing
Pablomike profile picture
Correct symbol is FBRT.PE. 8% yield seems about right to me??
I'd imagine that the -D is much more likely to be called than any of the others, and that the -C is least likely because of the lower Libor+spread after reset. Question is whether you'd be satisfied with the -C's 4.97% spread looking far forward....
Colorado Wealth Management Fund profile picture
@drdsch Agreed. The 4.97% spread would be pretty weak if shares were purchased at $25.00. Since the price is materially lower, the result is substantially better.
@drdsch -D is over 3% below par. If ti gets called you made good money. Dividends plus 3+%. That kind of call is nothing to be afraid of, if it happens just buy something else.
How about BIP-PRA? I’m shocked that a Brookfield issue could trade at such a discount.
Pablomike profile picture
@Colorado Wealth Management Fund
The article and the headline don't fit. 3 picks 7.2% to 9.3%. I only see two picks and neither is 9.3%. What did I miss??
I own NRZ-C. I think it's a little early to be comparing call risk/yields with the D.
Colorado Wealth Management Fund profile picture
@Pablomike NRZ-D when the call protection ends. It would be a 9.23% yield on the price.
@Colorado Wealth Management Fund bought 2000 shares 24.20 early in week feel more comfortable with floating rate attached to 5yr treasury
Pablomike profile picture
@Colorado Wealth Management Fund
How did I not add that together??? Text said D goes up 2% if 5 yr. T doesn't drop.
Thanks CWMF!!!
Still holding DX here with dividends finally bringing me near even after that late July plunge last year.
Colorado Wealth Management Fund profile picture
@Isg2008 Plenty of investors in the other agency mortgage REITs who would be very jealous of being near breakeven after the things that happened to the sector.
Uraniumbuzz profile picture
@Colorado Wealth Management Fund Love your analyses! I started a position in NRZ/D today. Looking at C. C buyers must be anticipating LIBOR less than say, 1.25-1.5% or so in Feb 2025? Is that right?
Colorado Wealth Management Fund profile picture
@Uraniumbuzz It's possible, but the yield curve suggests it would be higher. Of course, the curve can certainly change before then. But the overall risk/reward is nice.
Uraniumbuzz profile picture
@Colorado Wealth Management Fund Thank you and I agree
@Uraniumbuzz Here’s a site I use to see the forward contracts on 3 month LIBOR and SOFR, its eventual replacement.

Always enjoy your content!

I bought into MFA during the height of the market panic back in 2020. About 4000 shares at a cost basis of $1.33.

Probably the smartest investment I'll ever make, if I'm being honest with myself. That initial $5,000 investment is currently generating about $450 each quarter, which I'm using to diversify into other REITS, MREITS, and dividend stocks. I love MFA, but too much of a good thing, and all that.
Colorado Wealth Management Fund profile picture
@tendrecroppes Great purchase. You really got it right in the middle of the panic!
policyoftruth profile picture
@tendrecroppes monster buy!
The Franchise profile picture
I loaded up on NRZ/PRC last week. It offers good upside potential and currently it is the best on the NRZ preferreds followed by NRZ/PRD.
Love NRZ. Right now it is priced historically low with a rock solid monthly dividend of close to 12% on this AAA stock.
jakefountain profile picture
@7204681 AAA stock? Only MSFT and JNJ are AAA rated stocks.
Glad to see you agree that NRZ-C is at a bargain price now. I was beginning to wonder what I was missing.
Colorado Wealth Management Fund profile picture
@KenVa I only include a few of my picks in the public release, so I'm always picking a few to keep for subscribers. NRZ-C was one of those where I wanted to mention it a few times before sending it public.
Hi Scott, I’m a big fan of yours. Please would it be possible to have a general idea of what goes inside your preferreds risk metric? Thanks
Colorado Wealth Management Fund profile picture
@andrea_ml Hey Andrea_ml. I'm Mike. I work with Scott. I set the preferred share risk ratings to include a mix of fundamental risk and price risk (which isn't always driven by fundamentals).
NecessityMadeMeDividendInvestor profile picture
Hello CWM, I never bought preferred stock yet, but the NRZ.C really bang to my eyes.
Will check if my broker offer that and will try buy 10 or 20 pcs as test.
Thank you very much for your support and great work.
Thank you for sharing your ideas and hard work. I am curious, what keeps an issuer from buying up shares in the open market that are trading below par versus redeeming them for par value?
Colorado Wealth Management Fund profile picture
@jackwest They are allowed to do that and in some cases I think it would be a very wise thing for them to do.
rhythmbreakdown2 profile picture
@Colorado Wealth Management Fund

Owned NRZ and sold for a loss. NRZD may be the step to take. I did not see when the preferred would reset. Is it in a year or so?
Pablomike profile picture
It's in the charts. 11-15-2026.
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