11% Dividend Yield And 38% Upside

Despite huge yields, this sector is getting hammered. Fat dividends that grow with short-term rates are a nice hedge. This 11% yields will grow to over 13% if the Federal Reserve follows through on their plan. Main risk factor is if home prices plunge. Not decline, but actually plunge. We swapped between two undervalued shares to make this investment. It's hard letting a good share go, but we are ruthlessly optimizing our portfolio.

Our goal is to maximize the value of our portfolio. We don't have unlimited cash because our portfolio has to exist in reality. That means making some tough choices and sometimes selling a share we don't really want to sell. This is one of those cases where we gave up a very good deal to get an even better deal. This is an ongoing process. When we get a better opportunity, we would be happy to change again. Sold 3,591 shares of MFA-C (MFA.PC) at $18.17866 per share (weighted average) for proceeds of $65,283.15. Used proceeds to buy 3,616 shares of CIM-B (CIM.PB) at $18.05019 per share for a total cost of $65,269.47.

Source: Seeking Alpha

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