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8.5% Yield Preferred Stock With Inflation Protection, From PennyMac

Published Sun, 25 Oct 2020 09:35:00 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas8.5% Yield Preferred Stock With Inflation Protection, From PennyMacOct. 25, 2020 9:35 AM ET|| About: PennyMac Mortgage Investment Trust (PMT), PMT.PA, PMT.PB, Includes: AGNC, CIM, MFA, MITT, NLY, NYMT, PFSI, TWOby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryThe mortgage market has surprised many "experts" and has remained extremely strong.
New data indicates that most mortgages coming off of forbearance are going back to making on-time payments.
The market has been treating forbearances as the equivalent of defaults.
The market is wrong, and here's how you can profit from it.
Co-produced with Beyond Saving
At High Dividend Opportunities, we have been discussing the opportunities we have been seeing in residential real estate. In March, everyone "knew" that COVID-19 was going to kill the housing market and we were heading for the next huge mortgage crisis. Everyone was wrong as the housing market remained extraordinarily strong, lifted by crashing mortgage rates.
In August, the world was going to end because delinquencies were rising at the fastest pace since 2009! News stories dug up the horrors of 2009 all over again. After all, nothing gets clicks like fear.
The reality is that the housing market was not in a bubble like it was in the early 2000s. Homeowners have a lot of equity in their homes and home values were rising at a reasonable and sustainable pace. When COVID-19 hit, homeowners were very well positioned financially.
True, for many there have been cash flow issues and the US government was quick to respond along with most major banks, offering forbearance programs and allowing homeowners to defer mortgage payments. These plans have been a huge success, providing the majority of homeowners the time they needed to regain enough cash flow to comfortably pay their mortgage again.
Earlier this month we saw the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ANNALY CAPITAL MANAGEMENT 8.60   0.0 -3.32 1.20 14.00
NEW YORK MORTGAGE TRUST 6.14   12.0 0.51 0.80 12.74
AMERICAN CAPITAL AGENCY 15.64   0.0 -1.54 1.92 12.21
TWO HARBORS INVESTMENT 13.28   0.0 -2.81 1.60 12.02
AG MORTGAGE INVESTMENT TRUST 17.47   6.1 2.87 1.90 10.89
MFA FINANCIAL 7.39   10.4 0.71 0.80 10.81
CHIMERA INVESTMENT 19.57   21.5 0.91 2.00 10.23


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