3 Small-Cap Mortgage REITs Yielding Over 10% In Dividends

Surbhi Jain
3 min read
0
In this article:
3 Small-Cap Mortgage REITs Yielding Over 10% In Dividends3 Small-Cap Mortgage REITs Yielding Over 10% In Dividends
3 Small-Cap Mortgage REITs Yielding Over 10% In Dividends

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

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.

Trending Now:

Here are our three picks; each REIT delivers double-digit dividends in a volatile market.

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.

Read More:

  • Purchase shares in great masterpieces from artists like Pablo Picasso, Claude Monet, Andy Warhol, and more. Here’s how you can be part of the art market.

  • This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
    This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.

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.

Better Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings.

This article 3 Small-Cap Mortgage REITs Yielding Over 10% In Dividends originally appeared on Benzinga.com

? 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement