When it comes to high-yield investments, mortgage Real Estate Investment Trusts (REITs) can be the unsung heroes of your portfolio. As Benzinga gears up for its two-day SmallCAP Conference in October, we’re shining a spotlight on small-cap mortgage REITs that offer double-digit dividends in a volatile market.
TPG RE Finance Trust Inc (TRTX) is one of our top picks, boasting an impressive 11.2% dividend yield. This commercial real estate finance company focuses on floating-rate first mortgage loans, with a portfolio heavily weighted towards multifamily properties. TRTX’s CEO, Doug Bouquard, has emphasized the firm’s strategy of recycling capital to take advantage of new opportunities, particularly in industrial lending. The stock has seen a strong rally of over 25% in the past year, thanks to a conservative approach that reduced exposure to office loans while increasing liquidity.
MFA Financial Inc (MFA) is another standout with a robust 11.88% dividend yield, specializing in residential mortgage assets. The stock recently hit a 52-week high, reflecting a 16.18% one-year change. MFA’s resilience is a testament to its strategic investments in residential mortgage credits, positioning it well for continued growth and making it an attractive option for income-focused investors.
Ellington Financial Inc (EFC) also offers an 11.88% yield and has carved a niche in both residential and commercial mortgage loans. The company reported strong second-quarter results, with a 4.5% non-annualized economic return and an increase in adjusted distributable earnings per share. Ellington’s success is driven by its focus on high-yielding credit strategies and a robust reverse mortgage loan business. With a solid cash position and strategic portfolio management, EFC is poised for further growth.
Whether it’s TPG’s capital recycling strategy, MFA’s residential investments, or Ellington’s credit strategies, each of these REITs presents a compelling case for investors seeking high income and potential growth.
Don’t miss the opportunity to learn more about these opportunities and dominate in a volatile market at the Benzinga SmallCAP Conference on October 9-10, 2024, at the Chicago Marriott Downtown Magnificent Mile. Gain exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you’re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
In conclusion, mortgage REITs can be a valuable addition to your investment portfolio, offering high yields and potential for growth in a volatile market. Consider exploring options like TRTX, MFA, and EFC to diversify your portfolio and maximize your returns. Stay informed and take advantage of opportunities like the Benzinga SmallCAP Conference to stay ahead in the ever-changing world of finance.