10% Dividend Yield To Buy At 40% Below Book Value

When shares trade at a 40% discount to book value, they should have substantial flaws. This REIT isn’t perfect, but it deserves a higher ratio. The 10% dividend yield pays investors to wait for the price to recover. We’ve traded these shares before, so we aren’t afraid to buy them when the discount gets big. We bought shares late last week and you can still get the same price today.

It's that time of year again. The time when opportunity knocks. Today's opportunity is called Granite Point Mortgage Trust (GPMT). GPMT is one of the commercial mortgage REITs and it trades at a substantial discount to current estimated book value. The company provided a preview of their Q1 2022 earnings, so there is even less mystery about the upcoming results. Shares trade at about 60% of current estimated book value. That's low. While GPMT should probably be trading below book value, they shouldn't be that cheap.

Source: Seeking Alpha

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