5 Real Estate Dividend Stocks with High Yields

2. MFA Financial, Inc. (NYSE:MFA)

Dividend Yield: 7.63%

Number of Hedge Funds: 17

MFA Financial, Inc. (NYSE:MFA) invests in residential mortgage products like residential MBS and residential whole loans on a leveraged basis.

During Q3 2021, MFA Financial, Inc. (NYSE:MFA) generated a GAAP net income of 27 cents, increasing by 13% on a sequential basis and comprehensively outperforming the consensus forecast of 11 cents. The economic book value of MFA Financial, Inc. (NYSE:MFA) stood at $5.27 per share, translating into a discount of 12.9% from the stock price. The company paid a dividend of 10 cents per share for the third quarter of 2021 on October 29.

In a report issued to investors on December 8, Stephen Laws at Raymond James upgraded the New York-based firm from Market Perform to an Outperform rating with a price target of $5.25. The analyst highlighted the stellar Q3 2021 results and upgraded MFA Financial, Inc. (NYSE:MFA) stock in anticipation of generating attractive portfolio returns in the future also. The analyst sees the bottom line of MFA Financial to receive some tailwind due to strong net interest income as a result of new investments and low cost of financing. Furthermore, MFA Financial, Inc. (NYSE:MFA) is expected to see more net gains on loans and a higher generation of business purpose loans (BPL) from the acquisition of Lima One.