Dividends4Life: This 12% Yielder Can Fly Higher

This 12% Yielder Can Fly Higher

Posted by D4L | Friday, August 05, 2016 | | 0 comments »

Last year I started selecting a couple of high-yielding income stocks for my new $100,000 high-yield income portfolio. This company rebounded strongly in 2016 and is up ~50 percent from February lows. Despite the rebound, the company continues to sell for a large discount to accounting book value. An investment in it yields 11.51 percent.

PennyMac Mortgage Investment Trust got slammed pretty hard in 2015 and at the beginning of this year because investors reacted to PennyMac's dividend cut. Further, investors ditching high-yielding stocks for safer investments didn't help PennyMac's shares much either. However, PennyMac Mortgage Investment Trust has bounced back nicely on the back of improving investor sentiment ever since the trust's shares crashed to new lows in February: PennyMac's shares have advanced ~7 percent this year, but surged ~50 percent from a low of $10.91 on February 4, 2016. Despite the recovery in PennyMac Mortgage Investment's valuation, the trust is not overpriced yet, and comes with a handsome ~12 percent dividend yield, too.

Source: Seeking Alpha

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