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Mortgage Investment Stocks Offer High Yields

Investors looking for high yields may want to consider specialty finance companies that invest in residential mortgage-backed securities (RMBS), residential mortgage loans and real estate-related securities. The primary objective of these companies is to pay dividends with high yields and, secondarily, provide capital appreciation.

Many of these companies operate as real estate investment trusts (REIT), so they are required to pay out 90 percent of their earnings to avoid paying corporate taxes.

These stocks are volatile and some companies have a history of cutting dividends.

Here is a table of 8 high-yield mortgage investment stocks.

Mortgage Investment Stocks
Stock
Quote
Annual Dividend & Yield
Annual Dividend 100 Shares
Customize
Price to Annual Dividend Ratio
1-Yr Price Chart
Annaly Capital Management
1.20 (11.67%)
$120.00
8.57
Anworth Mortgage Asset Corporation
0.60 (12.68%)
$60.00
7.88
Capstead Mortgage Corporation
0.64 (7.42%)
$64.00
13.47
Chimera Investment Corporation
2.00 (11.76%)
$200.00
8.51
Cypress Sharpridge Investments
0.88 (13.31%)
$88.00
7.51
MFA Financial
0.80 (10.78%)
$80.00
9.28
New York Mortgage Trust
0.80 (13.51%)
$80.00
7.40
PennyMac Mortgage Investment Trust
1.88 (10.92%)
$188.00
9.15
Sum Dividends
$880.00
Price and dividend data from Quandl. Dividend, yield and price to dividend ratio as of Apr-14-2018.


To inspect the performance of the Mortgage Investment Stocks portfolio, see the returns table and chart below. Portfolio values are computed using monthly closes for from Quandl.

The 6 included in the portfolio computations are: NLY, ANH, CMO, CIM, MFA and NYMT. The current value of the portfolio assumes that $1,666.67 was invested (total of $10,000) in each at its closing weekly price for the current date in 2008. CYS and PMT were excluded from the portfolio computations because of insufficient price data.


Mortgage Investment Stocks - Return Results
Portfolio:
Mortgage Investment Stocks
Start date:
Apr-21-2008
Start value:
$10,000
End date:
Apr-21-2018
End value:
$33,656
Number prices
121
Minimum value occurred on Oct-31-2008
$7,211
Maximum value occurred on Sep-30-2017
$36,660
Total gain or loss (Start date to End date)
236.56%
Annualized gain or loss (Start date to End date)
12.90%
Total dollar value on End date of a $10,000 purchase made on Start date
$33,656
Average percent return for all possible buy/sell combinations
67.67%
Number returns
7,260
Number profitable returns (Winners)
6,725
Percent profitable returns
92.63%
Number unprofitable returns (Losers)
535
Percent unprofitable returns
7.37%
Winners to losers ratio
12.57
Stock Return Calculator





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