When it comes to high-yield investments, mortgage REITs can be the unsung heroes of your portfolio.
As Benzinga looks forward to its two-day SmallCAP Conference in October, we're taking the time to spotlight small-cap mortgage REITs.
Here are our three picks; each REIT delivers double-digit dividends in a volatile market.
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- TPG RE Finance Trust Inc (NYSE:TRTX) yields an impressive 11.2%. The commercial real estate finance company, focused on floating-rate first mortgage loans, has a portfolio heavily skewed towards multifamily properties. TRTX CEO Doug Bouquard highlighted the firm's strategy of recycling capital to capitalize on new opportunities, especially in industrial lending. The stock has rallied over 25% over the past year. A conservative approach reduced exposure to office loans while boosting liquidity.
- MFA Financial Inc (NYSE:MFA) comes in with a robust 11.88% dividend yield, specializing in residential mortgage assets. Recently, the stock hit a 52-week high, reflecting a 16.18% one-year change. MFA's resilience is a testament to its strategic investment in residential mortgage credits. The company's strong performance and investor confidence suggest it's well-positioned for continued growth, making it an attractive option for income-focused investors.
- Ellington Financial Inc (NYSE:EFC) is also yielding 11.88%, 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 a rise in adjusted distributable earnings per share. Ellington's success is driven by its strategic 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 focus on capital recycling, MFA's strategic residential investments, or Ellington's high-yielding credit strategies, each offers a compelling case for investors seeking high income and potential growth.
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Don't miss the opportunity to dominate in a volatile market at the Benzinga SmallCAP Conference on October 9-10, 2024, at the Chicago Marriott Downtown Magnificent Mile.
Get 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!