Dividends4Life: Time To Buy This 11.5%-Yielding Top-Shelf Mortgage REIT?

The stock market drop is a good opportunity to buy mortgage REITs with robust dividend coverage stats. Given this company's continued excess dividend coverage in the fourth quarter, a dividend hike in 2018 is in the cards. The REIT's shares are cheap, selling for just 7.0x Q4-2017 run-rate core earnings. An investment in the stock comes with an entry yield of 11.5 percent.

High-yield income vehicles are on sale again. Thanks to the sudden return of volatility in the last two weeks, mortgage REITs offer attractive entry points. In particular, Chimera Investment Corp. (CIM) is a promising buy on the drop. The mortgage REIT reported strong fourth quarter results, and continued its streak of significant dividend excess coverage. Shares are much more reasonably valued after the sell-off, and an investment in the mortgage REIT comes with an entry yield of 11.5 percent.

Source: Seeking Alpha

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