As a value investor, I’m a little frustrated these days. There is virtually nothing cheap anywhere in the public markets. Stocks are expensive, trading at cyclically-adjusted price earnings ratios higher than those before the 1929 and 2008 crashes. And the 10-year Treasury yield — even after its recent surge — is barely 0.4% above the core inflation rate. Yet there is one corner of the market still showing signs of value: mortgage REITs.
I wrote earlier this year that mortgage REITs as an asset class were trading at some of the steepest discounts to book value in history. Well, as we round out the first quarter, very little has changed on that front. Even as earnings and revised book values have come in, valuations haven’t changed much. The mREIT universe is small, and the top 10 holdings [of iShares Mortgage Real Estate Capped (NYSEARCA:REM)] make up 68% of the total portfolio. Two mortgage REITs alone — Annaly Capital Management, Inc. (NYSE:NLY) and American Capital Agency Corp. (NYSE:AGNC) — make up about 30% of the portfolio.
Source: InvestorPlace
Related Articles:
- The Most Important Financial Statement When Selecting Dividend Growth Stocks
- 5 Five-Star Dividend Stocks
- 5 Dividend Stocks Delivering The Secret To Successful Investing
- Mid-Year 2014 Top And Bottom Performing Dividend Stocks
- 6 Dividend Stocks With A Low P/B Ratio
Mortgage REITs Are a High-Yield Bargain
Posted by D4L | Wednesday, April 08, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Does the high interest rate environment we're living in have you feeling down? Here's something to remember that can help you turn t...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.