This preferred stock has come into buy range. I looked into it a week ago and it was a few cents away from what I thought a buy was. It has an 8% dividend yield with almost two years of call protection. Preferred shares are a great way to get a high dividend yield with low volatility.
MTGE Investment Corp. (NASDAQ:MTGE) built a portfolio from RMBS (Residential mortgage backed securities). They use both agency and non-agency RMBS. The non-agency RMBS exposed MTGE to some credit risk. These securities generally reflect much older non-agency loans. They are purchased at a substantial discount to face value. The income generated by the securities consist of both the coupon payment on the mortgage and the accretion of the discount. For investors who are new to mortgage REITs, accretion is the opposite side of amortization. When MTGE buys a loan for $80 and it has a face value of $100, they are able to recognize the difference of $20 as additional interest income over the life of the loan. Overall, I think the credit risk in the MTGE portfolio is acceptable and there is plenty of common equity to absorb the losses if I am wrong.
Source: Seeking Alpha
Related Articles:
- Love People, Use Dividend Stocks
- We Were Dividends, Before Dividends Were Cool
- 7 Dividend Stocks Delivering The Secret To Success
- 5 Low-Risk, High-Yielding Dividend Stocks
- 9 Dividend Stocks For A Rainy Day
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Strange but true: seniors fear death less than running out of money in retirement. So what's a retiree to do? You could cut your expense...
-
If you're anticipating a long retirement, you'll want to remain invested in stocks to give your money a chance of outpacing inflatio...
-
When writing this article, I was looking for an ideal list of dividend-paying stocks that consistently raise their dividends each year. In a...
-
If I could teach investors one thing, it would be how to identify and value “Forever Assets.” These businesses constitute the single best wa...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
Exxon Mobil Corporation (NYSE:XOM) stock is trading at the same level as it was during the beginning of 2019. Even with company-specific pos...
-
One of the Best Dividend Stocks of the Past Decade. If you ask most people to name the best dividend stocks, they’ll rattle off a similar li...
-
Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply swe...
-
Dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplan...
-
All bull markets come to an end, and this past decade has been a remarkable one for investors who've escaped largely unscathed from any ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.