Why Buying 12.8%-Yielding Stock Is Still A No-Brainer

This company recently released solid second quarter earnings. The mortgage REIT once again outearned its dividend with core earnings in Q2-2019. Shares sell for a very reasonable run-rate core earnings multiple, are still priced at a slight discount to accounting book value. Management could double down on acquisitions going forward, and deserves the benefit of the doubt. An investment in the stock yields 12.8 percent.

If you are looking for a high-quality mortgage REIT to add to your high-yield income portfolio, you may have to look no further than New Residential Investment Corp., Inc. (NRZ). The mortgage REIT just released decent second quarter earnings, covers its dividend with core earnings (lending a high degree of dividend safety to an investment in NRZ), is positioned for various interest rate environments, and has grown its net asset value at a fast clip. New Residential Investment Corp.'s shares remain very competitively priced and throw off a dividend yield of 12.8 percent.

Source: Seeking Alpha

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