In this article, we discuss 5 REIT dividend stocks with over 10% yield. If you want our detailed analysis of these stocks, go directly to 11 REIT Dividend Stocks With Over 10% Yield.
5. Invesco Mortgage Capital Inc. (NYSE:IVR)
Invesco Mortgage Capital has been in the news this year, but not for the good reasons, as its board cut the company’s dividend by 28% in September. The board announced a quarterly dividend of $0.65 per share, a major decline from its previous dividend of $0.91. However, despite the dividend cut, the company’s forward dividend yield came in at about 21. The dividend cut was not without a reason. The company’s management said that the cut would allow the company to “retain additional capital and further improve its capital structure.” The company also issued an update on its portfolio and liquidity, saying that its total investment portfolio as of the end of August was valued at $4.9 billion.
As of the end of the second quarter, 7 hedge funds in Insider Monkey’s database of 895 funds had a stake in the company, compared to 10 funds in the previous quarter. The total value of these stakes stood at about $28 million. The biggest stakeholder of the company at the end of June was Dmitry Balyasny’s Balyasny Asset Management, which had a $12.5 million stake in the company.
4. MFA Financial, Inc. (NYSE:MFA)
MFA Financial is a New York-based REIT that invests in residential mortgage assets, including non-agency mortgage-backed securities (MBS), agency MBS, and credit risk transfer securities. The stock has a dividend yield of about 17% as of November 1. The stock jumped in October after the company posted preliminary results for the third quarter. The company expected its book value per share in the quarter to come in at $15.25-$15.40, compared to $16.42 per share posted at the end of the second quarter.
As of the end of the second quarter, 15 hedge funds tracked by Insider Monkey had stakes in the company, compared to 16 funds in the previous quarter. The total value of these stakes was $153 million.
3. Ready Capital Corporation (NYSE:RC)
Ready Capital is a New York-based REIT that has a dividend stock of over 13% as of November 1. On September 15, the company announced a dividend of $0.42 per share, in line with the previous dividend. As of the end of the second quarter, 9 funds in the database of Insider Monkey had stakes in the company, compared to 11 funds in the previous quarter.
2. Redwood Trust, Inc. (NYSE:RWT)
Redwood Trust operates three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The stock has a dividend yield of 12.8% as of November 1. Redwood Trust stock jumped last month after the company posted its Q3 results. Its Non-GAAP Earnings Available for Distribution (EAD) came in at $0.16 as compared to -$0.11 posted in the same quarter last year. Net interest income plummeted by 16.67% to reach $35 million.
As of the end of the second quarter, 14 hedge funds tracked by Insider Monkey had stakes in the company, compared to 16 funds in the previous quarter. The total value of these stakes was about $40 million. The biggest stakeholder in the company at the end of the June quarter was Phill Gross’ Adage Capital, which had a $13.3 million stake in the company.
1. Two Harbors Investment Corp. (NYSE:TWO)
Minnesota-based REIT Two Harbors Investment is one of the best REIT dividend stocks to buy today. The stock has a dividend yield of about 19% and a PE ratio of 1.43 as of November 1. In October, investment firm RBC Capital analyst Kenneth Lee lowered his price target on the stock to $4.50 from $5.50. However, the analyst kept an Outperform rating on the stock. The analyst said that he is cutting his full-year fiscal 2022 outlook on the company by 2 cents to 77 cents. He also cut his FY’23 guidance by 6 cents to 73 cents. The analyst said that he took into account the updated assumptions related to funding costs and asset yields based on the current market situation.
The latest market conditions are indeed taking a toll on the company. In October the stock dipped after the company announced preliminary third quarter numbers. As of the end of the second quarter, 30 hedge funds tracked by Insider Monkey had stakes in the company, compared to 31 funds in the previous quarter. This makes Two Harbors Investment one of the most popular high-dividend REIT stocks in our database of 895 elite hedge funds. The biggest stakeholder of the company as of the end of the June quarter was Ken Griffin’s Citadel Investment Group, which had a $15.2 million stake in the company.
Please take a look at 11 Best Dividend Aristocrats with 3+% Yield and 12 Best Reddit Stocks To Buy.
