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New Residential Investment Corp.: Consider This 7.4%-Yielding New Preferred Stock

Published Wed, 10 Jul 2019 17:30:49 -0400 on Seeking Alpha

New Residential Investment Corp. (NRZ) just joined a bunch of other mortgage REITs and issued a new fixed-to-floating preferred stock (NYSE: NRZ.PA) which is a compelling alternative to the common stock for high-yield investors that want to reduce investment risk while still securing a high dividend yield. I expect the Series A to be less volatile than the mortgage REIT's common shares, which have sold off recently. My rating on the preferreds: "Buy".
New Preferred Stock Offering
New Residential Investment Corp. finally offered a preferred stock, following other mortgage real estate investment trusts in the sector such as Annaly Capital Management, Inc. (NLY), Chimera Investment Corp. (CIM) and AGNC Investment Corp. (AGNC). All of these mortgage REITs have issued preferred stocks over the last two years, and, specifically, fixed-to-floating rate preferred securities.
New Residential Investment Corp. now issued the 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock which has begun trading on the New York Stock Exchange last week.
According to New Residential Investment Corp.’s press release announcing the securities offering, the mortgage real estate investment trust raised gross proceeds of $135 million from its preferred stock offering and will use the proceeds for “investments and general corporate purposes”.
New Residential Investment Corp.’s Series A preferred stock is senior to the mortgage REIT’s common stock which should... Read more