Most income investors are highly risk averse. That’s why big companies in defensive industries such as Procter & Gamble Co (NYSE:PG) and Johnson & Johnson (NYSE:JNJ) have been highly sought after. The thing is, though, because investors have been chasing these well-known dividend stocks, their share prices have already been bid up. And since a company’s dividend yield is calculated by dividing its annual payout by the stock price, surging share prices have translated to lower yields for these companies. So what if an investor wants to find a high-yield stock? Well, that often means looking into the more volatile areas of the stock market. One of these sectors is made up of mortgage real estate investment trusts (REITs).
Today, I’m looking at Great Ajax Corp (NYSE:AJX), a mortgage REIT headquartered in Beaverton, Oregon. The company invests primarily in mortgage loans secured by single-family properties. Compared to other players in the business, Great Ajax is a relatively new name, having completed its initial public offering (IPO) in February 2015. If you have paid any attention to the last financial crisis, you would know that mortgages aren’t always the safest investments. In fact, the large amounts of mortgage delinquencies and foreclosures after the burst of the housing bubble in 2007 were considered a major cause of the Great Recession.
Source: Income Investors
Related Articles:
- 12 Dividend Growth Stocks With A Good Yield/Growth Mix
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 4 High Yield, High Risk Dividend Stocks
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- Dividends vs. Stock Buybacks
________________________________________________________________
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,...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
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...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Dividend payers have long had a reputation as stodgy companies that can pay a reliable income but whose stocks don't move too fast. Here...
-
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...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
-
Buying and holding great dividend stocks is a fantastic way for patient investors to achieve outsize returns over the long run. But not ever...
0 comments
Post a Comment
Post a Comment