The popular mortgage REIT we review in this report offers huge dividends on both its common and preferred shares. And while some investors are drawn to these big income payments, we believe it is an absolute junk investment. In this report, we explain why it should be avoided, and then offer two better big-dividend opportunities for you to consider.
Mortgage REIT Preferred Shares: Attractive 8.4% Yield, Discounted Price
The common shares of this once beloved mortgage REIT suffered significant equity erosion earlier this year (and it was forced to cut its dividend by 90%) as it was hit with margin calls and forced to liquidate assets at depressed prices during the market-wide Covid-19 sell-off. Since then, the company has been limping its way back towards better health, albeit with a significantly less valuable book of business. Furthermore, the company’s three series of preferred shares still trade at attractively discounted prices and offer compelling high yields (they are also insulated, from some risks, by the company’s common shares). In this article, we review the business, the shares (common and preferred), and then conclude with our opinion on investing.
Helicopter Fed: Top 10 mREITs and Bond CEFs (Huge Yields, Discounted Prices)
This article shares our Top 10 compelling mREITs and Bond CEFs. They trade at significant discounts to their book values and are being supported, to varying degrees, by the actions of the US Fed. The Fed is pumping an unlimited amount of liquidity into the system by buying the types of bonds these compelling mREITs and CEFs own.
4 Big Dividends That Have Gotten Less Expensive: Energy Transfer (ET), New Residential (NRZ), Ventas (VTR), Oxford Square (OXSQ)
The market continues to reach new all-time highs, and our investment portfolios do too. However, a handful of popular big dividend paying equities have gotten particularly less expensive in recent weeks. This week’s Weekly provides a brief update on all four of them, and whether we believe they are worth investing or avoiding altogether.
Options Trade: New Residential: Why This 13.3% Yielder Fell 16%, And What Comes Next
Big-dividend mortgage-related REIT, New Residential (NRZ), is down 16% in the last few months while the overall market (SPY) is still up. This article explains why it fell, what will likely happen next, and we conclude with an attractive income-generating options trade that you may want to consider.
Despite Big Market Gains, Lots of Attractive Opportunities Remain
The market (SPY) has been on fire this year (+21.4%), however plenty of very attractive long-term investment opportunities remain. This week’s Weekly shares the performance of each of our holdings across all three of our strategies, and then provides concise commentary on attractive opportunities among REITs, healthcare, growth stocks and our high-income low-beta “Alternative Fixed Income” strategy. We conclude with a little advice.
Market Too Hot? Top 10 Big Dividend REITs Worth Considering
With the S&P 500 recently hitting new all time highs, some investors fear we are overheating. One way to take a little risk off the table is by investing in attractive big-dividend REITs, which tend to rise and fall less with the overall market, but keep paying those big dividends throughout if you select them right. Despite, some analysts arguments that even REITs are overheating, many of them remain a much safer bet (with much higher income) compared to the overall market. This article addresses REIT valuation concerns, as well as overall market concerns in light of the Fed’s changing interest rate posture and where we seem to be (very late) in the current economic cycle. We conclude with our Top 10 Big-Dividend REITs worth considering.
The Most Loved & Hated Big-Dividend REITS
CBL and Tanger are two very hated retail REITs right now considering 40.3% and 53.0% of their shares (respectively) were recently sold short, and 0.0% of the Wall Street analysts covering them have a “buy” recommendation. Conversely, one of the big-dividend REITs we like and own has a negligible amount of short interest, and 100% of the Wall Street analysts covering it rate it a “buy,” as shown in the green bar chart. This update shares performance metrics on over 100 big dividend REITs, makes a few observations, and then highlights a couple of our favorites.
NRZ: Attractive 11% Yield, But Know The Risks
New Residential (NRZ) offers a very tempting 11% yield, but before diving in headfirst, investors should be aware of the big risks that this mortgage REIT faces. After explaining how NRZ makes money, this article reviews six big risks, followed by seven reasons why NRZ is attractive and may be worth considering, depending on your situation.
Top 10 Big-Dividend REITs: The Mass Exodus Continues
High-yield REITs continue to sell-off as investors exit in droves. This article highlights performance (and more data) on over 100 high-yield REITs that have sold off significantly. We then explain why REITs have sold off, and provide our views on why some REITs are starting to look increasingly attractive. We conclude with details on 10 specific high-yield REITs that are increasingly attractive and worth considering.
100 High-Yield Stocks Down Big Last Week: These 10 Are Worth Considering
Market fear spiked on Friday (the VIX was up 28.5%), and the Dow Jones experienced its biggest weekly decline in over 2 years (-4.1%). Interestingly, many higher yielding stocks also sold off significantly, and this article highlights ten that we believe are attractive and worth considering, especially following the selloff.
NRZ's 10.9% Yield: Take Profits or Let Winners Run?
Following the recently announced Shellpoint deal, a lot of shareholders are wondering if it's finally time to take some chips (and profits) off the table with this big 10.9% dividend yielding company. We've made a lot of profits (and received a lot of dividends) on NRZ after purchasing it at the start of 2016, but here is what we've decided to do with those investment dollars now...
Top 4 High-Income REITs Worth Considering
An Update on Our High-Yield REIT Holdings
New Residential: Weighing the Risks Ahead
New Residential Investment Corp (NRZ) is a unique mortgage REIT (think "MSRs") that is loved by many because of its big steady growing dividend payments (it currently yields 12.9%). However, this big yield does not come without risks as we’ve seen the shares fall 11% in the last three months. This article provides a brief review of the high-level risks facing NRZ, and then shares our views on the right way to think about NRZ.
Top 5 Attractive +7% Yields Worth Considering
...More Safe Big-Dividend Ideas
A Brief Update on our Mortgage REIT Holding
We Own These 3 REITs In Our Income Equity Portfolio
This week’s Weekly reviews the three REITs we actually own in our Blue Harbinger Income Equity portfolio. One is a residential REIT with a unique business model and an important competitive advantage, one is a blue chip industrial REIT with access to many prime locations, and the third is a big-dividend healthcare REIT that offers a very compelling contrarian opportunity.
New Residential: Huge Profits as Banks De-Risk—But is it Safe?
If you like big dividends and discounted prices, you may have noticed that mortgage REIT New Residential (NRZ) pays an enormous 13.5% dividend and its shares have declined nearly 8% in the last two months. NRZ emerged following the financial crisis as banks had to shed risk. NRZ continues to generate big profits with its mortgage servicing rights business, its heavy use of leverage, and its expanding call rights securities strategy. But the big question… is it safe?