Can You Profit From These 4 Large REITs?
By Stock Croc:Real Estate Investment Trusts, or REITs, are at the top of the stock market food chain when it comes to dividends. At the top of the REIT dividend chain are mortgage REITs. By utilizing yield spread and leverage, mortgage REITs routinely sport double digit yields. Other REITs own actual real estate and have tremendous annual write offs due to depreciation and amortization. Their earnings are therefore typically not their net profits, but rather their operating earnings or funds from operations [FFOs]. I will look at two mortgage and two non-mortgage REITs.
MFA Financial, Inc. (MFA)
MFA specializes in agency and non-agency mortgage backed securities, which are secured in turn by all types in single family mortgages. Its stock was trading recently at between $7 and $8 per share, midway in its narrow 52 week range of from $8.64 to $6.23. It has a price to earnings ratio of 8.2, andComplete Story »
- Original article
- Login or register to post comments

