Published Tue, 03 Nov 2020 11:00:00 -0500 on Seeking Alpha
Seeking AlphaDividend IdeasLike Preferred Stocks? Cherry Hill And Two Harbors Yield Up To 9%Nov. 3, 2020 11:00 AM ET|| About: Cherry Hill Mortgage Investment Corporation (CHMI), CHMI.PA, TWO, TWO.PD, TWO.PE, Includes: AGNC, AGNCM, AGNCN, AGNCO, AGNCP, CHMI.PB, FRC, FRC.PG, FRC.PH, FRC.PI, FRC.PJ, FRC.PK, NLY, NLY.PD, NLY.PF, NLY.PG, NLY.PI, ORC, TWO.PA, TWO.PB, TWO.PCby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryMortgage REITs (mREITs) and in particular "agency" mREITs are one of the most undervalued sectors today.
We explain why preferred stocks from "agency" mREITs are a very safe in the current environment. No "agency" mREITs have ever gone bankrupt.
We make the case that "fixed-rate" preferred stocks from Cherry Hill Mortgage and Two Harbors Investments are very undervalued and whose safety is under-appreciated.
We also highlight Cherry Hill Mortgage common stock as being the most undervalued agency mREIT with one-year total return potential of over 30%.
Co-produced with Preferred Stock Trader
About Agency Mortgage REITs
The agency mortgage REITs (agency mREITs) that we are highlighting own fixed-rate residential mortgages that are guaranteed by GSEs (Government Sponsored Enterprises). They generally use their equity, plus money they borrow at short term rates, to purchase higher-yielding residential mortgages or RMBS (Residential Mortgage Backed Securities). They earn their money from the spread difference between the short-term rates at which they borrow and the long-term rates they receive on their mortgages. They also use hedges to protect against moves in interest rates which could be detrimental to their profits or book value.
Why Agency mREIT Preferred Stocks Are So Safe - Especially Now
In the current environment, agency mREITs are as safe as they have ever been, yet yields on their preferred stocks are much... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ORCHID ISLAND CAPITAL||5.58||0.0||-0.29||0.96||17.75|
|ANNALY CAPITAL MANAGEMENT||8.60||0.0||-3.32||1.20||14.00|
|AMERICAN CAPITAL AGENCY||15.64||0.0||-1.54||1.92||12.21|
Older articles featuring Orchid Island Capital (ORC):Orchid Island Capital Alerts Stockholders to Dividend Payment Issue
Orchid Island Capital Announces September 2022 Monthly Dividend and August 31, 2022 RMBS Portfolio Characteristics
Orchid Island Capital Announces One-for-five Reverse Stock Split, August 2022 Monthly Dividend and July 31, 2022 RMBS...
Orchid Island Capital Announces Estimated Second Quarter 2022 Results, July 2022 Monthly Dividend and June 30, 2022...
Orchid Island Capital Announces June 2022 Monthly Dividend and May 31, 2022 RMBS Portfolio Characteristics
Orchid Island Capital Announces May 2022 Monthly Dividend and April 30, 2022 RMBS Portfolio Characteristics
Orchid Island Capital Announces Estimated First Quarter 2022 Results, April 2022 Monthly Dividend and March 31, 2022...
Orchid Island Capital Announces March 2022 Monthly Dividend, and February 28, 2022 Rmbs Portfolio Characteristics
Orchid Island Capital Announces February 2022 Monthly Dividend and January 31, 2022 RMBS Portfolio Characteristics
Orchid Island Capital Announces Estimated Fourth Quarter 2021 Results, January 2022 Monthly Dividend and December 31,...