11% Dividend Yield And 38% Upside

Summary

  • Despite huge yields, this sector is getting hammered.
  • Fat dividends that grow with short-term rates are a nice hedge.
  • This 11% yields will grow to over 13% if the Federal Reserve follows through on their plan.
  • Main risk factor is if home prices plunge. Not decline, but actually plunge.
  • We swapped between two undervalued shares to make this investment. It's hard letting a good share go, but we are ruthlessly optimizing our portfolio.
  • This idea was discussed in more depth with members of my private investing community, The REIT Forum. Learn More »
Portfolio management and asset allocation concept : Dollar bag, financial products on balance scale e.g ETFs, REITs, stocks, commodities, bonds, mutual funds, depicts balancing between risk and return

Sometimes we have to make hard decisions as we pick between competing shares.

William_Potter

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 weekly updates in the REIT Forum. Your continued feedback is greatly appreciated, so please leave

Get your 2 week free trial subscription today! | InsiderAdvantageGeorgia

You should try our service. Unlike most services, our service is backed by a real portfolio. Not a "model" portfolio. Not hypothetical positions. Not 7 different portfolios we made up in Google Sheets so we can brag about the good one. None of that crap.

You get real-time alerts on every trade. See current and past positions. I'm sick of analysts who have to retroactively pick a "portfolio" or get creative about defining "returns". Beat the index or get out.

Ask your analyst to share their portfolio value each month so you can verify their returns. When they object, try us.

This article was written by

Author of The REIT Forum
The #1 REIT Service For Those Targeting Strong Total Returns
You want to be on The REIT Forum because it is the #1 REIT research service on Seeking Alpha measured by returns. Period. See our Tipranks page. How did we get there? We did a better job of managing risk and discovering opportunities. We didn’t jump into trashy high-yield equity REITs with the rest of the crowd. We cover securities for trading and securities for the buy-and-hold investor. We are clear about the difference and that enabled us to perform better since inception and better in 2020.


Securities for the buy-and-hold investor generally carry much lower risk. If we enter a high-risk position, we plan to capitalize on a change in the valuation. We monitor those positions very carefully, rather than hoping everything turns out well over the next several years. That’s why we have so few losses in our investing.


We post our portfolio for you. You also get real-time alerts on every trade we place. Our reasoning for placing a trade is explained in clear English. You can even see the exact trades with the images we include from our stock accounts. We don’t offer you several different “portfolios”, instead, we show you exactly what we own, when we bought it, and how we are doing in that position. We make it simple for investors to follow our strategy.


You’ll find several reports on The REIT Forum that don’t get posted to the public side of Seeking Alpha. Many of our public reports are dramatically reduced versions of subscriber articles. If you enjoy our public articles, you’ll love the content we keep for subscribers.


Disclosure: I/we have a beneficial long position in the shares of AGNCO, CIM-A, DX-C, RITM-D, AGNCP, NYMTL, MFA-B, PMT-C, CIM-B, RITM, SLRC, AAIC, MFA, GPMT, RC 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.

Additional disclosure: 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.
I am actively trading mortgage REIT preferred shares based on relative value. We find most of the sector very attractive today. However, we cannot buy an unlimited volume of shares. Consequently, we will change positions when we get a better opportunity. In some cases, like this one, it requires selling an attractive share to get an even better deal.

Recommended For You

Comments (96)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.