Dividends4Life: New Residential Investment: This Outperforming Mortgage REIT Has A Covered 11.2% Yield And 12% Upside

Dividend Growth Stocks News

This REIT’s huge MSR portfolio and prospects for dividend growth are the two single biggest reasons to buy into the mortgage REIT today. It will most likely announce a dividend hike over the short haul - thanks to significant excess dividend coverage. Though shares have surged lately, the mortgage REIT is far from being expensive. I have a 12-month price target of $20, implying ~12 percent upside. An investment in the stock yields 11.2 percent.

New Residential Investment, Inc. (NRZ) not only offers income investors a covered 11.2 percent dividend yield, but an investment in the mortgage REIT also comes with capital upside as I see its shares as undervalued. New Residential Investment has one of the best dividend coverage stats in the sector that strongly tilt the odds in favor of a dividend raise over the short haul, or maybe even a special dividend. I think investors could capture total returns of ~25 percent over the next twelve months.

Source: Seeking Alpha

Related Articles:
- 4 Dividend Stocks For A Confident And Secure Future
- To Infinity and Beyond!
- 6 Dividend Growth Stocks With A Low P/E
- Rising Dividends = Rising Returns
- High-Yield, High-Return Investments To Increase Income While Waiting On Dividend Growth



Post a Comment

Note: Only a member of this blog may post a comment.