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New York Mortgage Trust: Healthy Margin Of Safety With This 8.3% Yielding Preferred

Published Mon, 20 May 2019 07:30:00 -0400 on Seeking Alpha

This article was co-produced by Rubicon Associates.
You may recall that we wrote an article earlier this year titled, "Accessing The Power Of Stress-Free, REIT Preferred Stocks." We explained that "REIT preferred stocks can be very useful for the construction of an investment portfolio - diversifying both its general and cash flow characteristics."
We added that investors should "understand what preferred equity really is" and we added this "working definition" below:
Preferred equity is essentially the shareholders' equity on a company's balance sheet. Junior in seniority to debt, it's still senior to common equity in that preferred dividends must be paid out prior to any dividends on common equity. Yet due to the dividend rate typically stated in advance and a lack of voting rights, preferred stock also has debt-like characteristics. Preferred equity, in essence, is 'in-between' capital.
Many investors seek out preferred shares because they recognize that these companies (that issue preferreds) "typically do everything they can to avoid cutting preferred dividends" and for that reason we decided that (as part of our marketplace service on Seeking Alpha - iREIT on Alpha) we would build out an extensive portfolio of preferred picks.
We have recently published notes designed to give readers a core portfolio of REIT preferred stocks. With 15 preferred stocks as the foundation, we are now focused on enhancing the portfolio in terms of yield and diversification. We... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
NEW YORK MORTGAGE TRUST 6.14   12.0 0.51 0.80 12.74