New Residential Investment Corp. is a rare type of mREIT that benefits from higher interest rates. If the Fed declines to raise rates New Residential could be negatively impacted at a fundamental level. Yet there is reason to believe the market won't care and could actually move shares higher. Despite strong fundamental performance and a sizable dividend New Residential Investment Corporation (NYSE:NRZ) underperformed in 2015 and faced continuing pressure in 2016. An association with mREITs and their interest rate sensitivity has pressured the company's shares as investors feared rising rates driven by a monetary tightening policy from the Fed.
Although New Residential would benefit from higher interest rates at a fundamental level, shares could actually rise if the Fed were to become more dovish since it could cause investors to buy back into mREITs. At this point I'm bullish on New Residential as the fundamentals at the company remain strong, the dividend remains large, and the current price shows the market it not yet appreciating either.
Source: Seeking Alpha
Related Articles:
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout
- High-Quality, Low-Risk Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Billionaire Paul Singer has made a fortune shaking up tired businesses. And right now he has a new company in his crosshairs. In industry ci...
-
To live off the passive income from stocks, one of the important things to pay attention to is the company’s distribution policy. Nowadays, ...
-
Whether you refresh your portfolio every five minutes or check it infrequently, like most investors you probably experience some level of st...
-
Utility stocks feature plenty of steady cash flows and high dividends. It doesn’t matter so much what the economy is doing as people still n...
-
The problem is, finding high-quality dividend stocks isn't easy. That's because yield and risk tend to be correlated. In other words...
-
Usually, when a dividend yield is around 10%, it's due to concerns about its sustainability. However, that's not the case with this ...
-
A High-Yield Stock Investors Can Count on. Considering that most dividend stocks pay less than four percent, a 6.2% annual yield should alre...
-
Reinvesting your dividends is a great way to boost the long-term performance of your stock portfolio, but a history of regular payouts alone...
-
We're now three-fourths of the way through 2019, and it's certainly been an eventful year so far. Although the S&P 500 is up by ...
-
While cash flow can come from bond interest or interest from other types of investments, many income investors hone in on dividends. A divid...
Great Post. I believe that NRZ is subject to interest rates that are outside of their control. However, this stock definitely has the chance to pay me lots of dividends.
Long NRZ