It is rare in the financial markets to get something for nothing. This is one of those rare opportunities where, due to poor liquidity and a lack of analyst coverage, market prices can diverge on very similar securities. The mortgage REIT sector exhibits at least a few opportunities where prices become inefficient. So far this year, I’ve seen a few opportunities come up in the preferred shares of larger mortgage REITs. Opportunity disappeared hours or weeks after publication (varies). This company is currently superior in every metric except one, and that one can be easily misunderstood. It offers better call protection, a larger discount to call value, and a larger coupon payment.
In this case I am writing about NYMTO and NYMTP. These are the two preferred shares for New York Mortgage Trust (NASDAQ:NYMT). This kind of divergence in pricing happens occasionally. I have seen this happen with other mortgage rates including in AGNC Investment Corporation (NASDAQ:AGNC) and ARMOUR Residential REIT (NYSE:ARR). More recently I saw it occur with Annaly Capital Management (NYSE:NLY). When even the large mortgage REITs can have this disconnection occurring in their preferred stock, it should be no surprise that New York Mortgage Trust would be ripe for the same issue.
Source: Seeking Alpha
- Why We Are Dividend Growth Investors
- 5 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 6 Dividend Growth Stocks With Very Little Debt
- 4 Secrets To Finding The Best Dividend Stocks
- What Determines A Dividend Stock's Yield
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Finding great long-term investments that will pay you dividends for years to come isn't always easy. Plenty of stocks offer high yields,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
Buying and holding great dividend stocks is a fantastic way for patient investors to achieve outsize returns over the long run. But not ever...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
0 comments
Post a Comment
Post a Comment